An individual retirement account or IRA can take on many forms. You may see many types of these retirement accounts in your place of work or in conversations with your friends. It seems that every so often another form of this type of retirement fund may pop up to appease some sort of political group or part of the economy that may be neglected. For instance, the MyRA account was started recently to allow for those making near poverty wages to start saving up for their own retirement.

When people refer to an IRA account they may be referring to what is known as a Traditional IRA fund. These funds are maintained by some custodial agency that maintains the amount of assets that are contained in the funds such as the stocks, bonds, and mutual funds that may exist within the confines of these funds.

One of the biggest advantages to using a tax deferred plan is that it is far easier to amass larger amounts of money within these funds for your retirement. For instance, each year you would be taxed on the gains in your portfolio and those taxes would drag down on the amount of compounding that could occur over time.

In a traditional IRA fund you would invest money before taxes, so than your relative income would be lower and as a result you would have to pay fewer taxes at the end of the year. With a Roth IRA on the other hand your tax burden remains the same yet the amount in your fund is not taxable when you retire. A careful comparison of the advantages between the types of retirement funds that are available should be done before you sign up for one.

If you don’t have an income that is large enough to really be a benefit to you to use the Traditional IRA than the next logical choice would be the Roth IRA type of fund. A Roth IRA fund has a lower threshold for income qualifications and as such it is available to more people in the workforce. Of course, if this fund is being offered by your workplace than that may just be what is available to you.

The total amount you can save for your retirement is dependent upon your total income as a household as well as if you are married or not. IF you are married than you may be able to save more per year as that is allowed under IRS tax regulations. For instance, if you are single you can save up to 5 thousand dollars per year in a IRA fund, yet if you are married you can save up to 10 thousand dollars per year in your retirement fund. This is when it is clearly advantageous to be married.

As well as you age the amount you can invest in a traditional IRA goes up so as to allow you to accelerate your retirement fund’s growth. The cap for each year increases due to the rise in inflation. Right now you can invest up to 6,500 dollars per year if you are over the age of 50, whereas others can only invest 5,500 dollars per year.

Periodically these rules change to please the growing population of retirees that are starting to retire each and every year. Every year there are always threats to your retirement, that is why it is so important to pay attention to what is said during political campaigns as these promises can dramatically affect how you save for your retirement.