Monday, December 29, 2008

Got An IRA?

From How much do you know about IRAs? by Robert Powell:

Make no mistake about it: The IRA is America's savings vehicle of choice. In 2007, assets in such accounts totaled $4.75 trillion, more than any other type of retirement account, according to an Employee Benefit Research Institute study published Wednesday.

That's the good news.

The bad news is that most Americans still don't have a clue about IRAs, even though they've been available for more than 25 years. Most Americans -- even those who don't have access to a 401(k) plan at work -- don't contribute to an IRA.

Just 10% of eligible taxpayers contributed to IRAs each year from 2000 to 2004, according to EBRI. And much of the growth in IRAs comes from rollovers (when a worker leaves his employer and transfers his 401(k) to an IRA) rather than new contributions.

So, it would appear that Americans still have much to learn about IRAs. Here are the best features - and least-known facts -- about IRAs, according to the experts:
Read the rest here.

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