8 Secret Perks Of Individual Retirement Accounts

Tax Advantages

IRAs allow tax-deferred or tax-free investment growth. Traditional IRAs allow tax-deductible donations, whereas Roth IRAs allow tax-free retirement withdrawals.

Flexible Investment Options

IRAs let you invest in equities, bonds, mutual funds, real estate, and more to meet your financial goals.

Creditor Protection

IRAs may protect your retirement money from creditors.

Early Withdrawal Exceptions

IRAs allow penalty-free early withdrawals for first-time home purchases, education, and medical expenses.

Spousal IRAs

Married couples can optimize retirement savings by contributing to a spousal IRA, even if one spouse has little or no income.

Estate Planning

IRAs can help you pass on money to heirs while lowering taxes.

No Age Limit for Contributions

IRAs don't have age limits for contributions, so you can save and get tax benefits even if you work past retirement age.

Inherited IRAs

Depending on the type of IRA and their relationship to the account owner, beneficiaries may be able to stretch out required minimum distributions across their lifetime, lowering the tax burden.

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