9 terms

IRA's (Retirement Investing)

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The Roth IRA is
an after-tax investment
The Traditional IRA is
a pre-tax investment
IRA's have an annual investment limit of
$6,000
To start an IRA you must have
an earned income
With an IRA, you can begin withdrawing money without penalty at
59 1/2 years old
With a Traditional IRA, you must begin taking withdrawals at
70 1/2 years old
With a Roth IRA, you must begin taking withdrawals at
no specific time
One benefit to a Traditional IRA is that you get
a yearly tax deduction
The main benefit to a Roth IRA is that you get
tax free growth of your investment