IRAs (Roth and Traditional)
IRAs give you more flexibility in how and when you contribute and withdraw your money. You can deposit funds at any time during the year, up to the annual limit. You can withdraw your money at any time (subject to taxes and penalties unless you meet certain criteria).
The advantage of a Roth IRA is the potential to withdraw tax-free in retirement. You pay taxes upfront by contributing after-tax dollars. In return, you enjoy tax-free withdrawals when you meet certain conditions -- generally, that the account is at least five years old and you are over age 59½.
A Traditional IRA can allow tax-deductible contributions while deferring any taxes on investment earnings until you start taking withdrawals.
You can contribute several ways. If your employer participates you may contribute through payroll deductions. Otherwise, you may contribute directly to URS. You may also roll over funds from other retirement plans (401(k), 403(b), IRAs) into the Traditional IRA. It's a great way to combine other plans you've accumulated over time (see specific details).
IRS limits apply to your combined contributions to all Traditional and Roth IRAs.
