Individual Retirement Arrangement – IRA (commonly referred to as Individual Retirement Account) – can be an important part of your retirement income.

When – an IRA can be established and funded at any time from January 1 of the current year and up to and including the date an individual’s income tax is due (generally, April 15 of the following year), not including extensions.

Who Can Establish – any individual who has earned income for the year (and will not reach age 70 ½ by the end of the year for a traditional IRA*).

The 2 most common types for wage earners are:

Traditional IRA – contributions may be tax deductible and earnings grow on a tax-deferred basis.

Roth IRA – contributions are never deductible and if certain requirements are met, account distributions are free of federal income tax.

*There are no age or income restrictions for establishing a traditional IRA for the purpose of receiving assets from another traditional IRA, 401(k), 403(b) or other qualified plan.