IRA definition: An Individual Retirement Account (IRA) is a type of investment vehicle you can use to help save for or manage your money in retirement. With an IRA, you choose individual investments — similar to the way you choose investments in a 401(k) or 403(b).
Even if you’re already saving in an employer-based retirement program, you may be able to still use an IRA as an additional way to save for retirement.
The most common types of IRAs are Traditional, Roth, SEP and SIMPLE. Depending on the type of IRA you choose, your earnings can grow either tax-deferred or tax-free.
If you receive self-employment income, a Simplified Employee Pension Plan (SEP IRA) is a tax-deferred retirement plan that you can use to save for retirement for yourself and/or your employees. A Savings Incentive Match Plan (also known as a SIMPLE IRA) gives small businesses a convenient way to contribute to their employees' - and their own - retirement.
Here are some questions to think about when choosing an IRA:
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY.
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