Are you thinking about saving for retirement with an advantage? If you are, then opening an Individual Retirement Account (IRA) is something that will work great for you and fit the bill perfectly. You might be wondering what is an IRA, the plans available and if it is the right option.

An Individual Retirement Account (IRA) is a portfolio of financial products like stocks, bonds, mutual funds, and retirement savings accounts. IRA is an investing tool for retirement that is used to save and earmark funds for various investment purposes to financially secure your future. Contributions can be made to four popular types of IRA’s including traditional, Roth, Simple, and SEP IRAs.

A retirement plan is an arrangement of financing an individual’s income post his retirement. These plans can be set by the employers, insurance companies, trade unions, government, or any other organization. Tax benefits are provided on investments made on some retirement plans based on provisions of the Internal Revenue Code (IRC) and regulated by the labor department under the ERISA Act.