Every individual strives to save for their retirement and there are numerous retirement accounts to choose from. To begin with, you need to contribute to 401(k) if you are eligible for one. This will ensure that you get money from your employer. If you have crossed the limit on your 401(k) or have no retirement plan, then you need to consider a retirement account. There are four types of IRA accounts for you to choose from. A clear understanding of the accounts and their features will help you decide on the right one. These accounts are specially designed for self-employed individuals.
The account may be set up with a bank or a financial institution. It is like a savings account that is set aside for retirement. The contribution you make each year is limited according to the type of account you have.
Types of IRA accounts
The four different kinds of IRA accounts for you to choose from are discussed in brief below:
Consider the pros and cons of every account so as to choose the best retirement account for yourself.