New legislation means big changes to Individual Retirement Accounts, which means big benefits for you.
IRAs are back . . .
This landmark legislation has restored IRA deductibility for many taxpayers and has made IRAs even more attractive for savers with medium to long-term time frames for investing. All three types of IRAs have different features and benefits as well as restrictions on who can contribute. The tax-deferred compounding feature is a smart reason to establish an IRA and to add to the account consistently every year. The new Roth and Education IRAs are both nondeductible, but offer tax-deferred earnings. In addition, both offer tax-free distributions if you follow certain requirements.