IRA is the most convenient individual savings plan for your



1. Account - This is a non-deductible, tax-free account, where you can deposit maximum of $4000, if you are under 50 years of age. This can be in form of annual contributions and you can get to know more about it from any brokerage firm, bank, credit union, mutual fund company, investment firm and insurance companies.

2. Contributions - You can open a Roth if your contribution is equal to earned income. $4000 is the contribution limit and it is only for individual who file tax returns and have an AGI of less than $95,000 annually and for couples filing tax returns the AGI can be less than $150,000.

3. Conversions from traditional IRA - AGI to be less than $100,000 for filings done jointly or as single filer.

4. Taxes - You need to pay the taxes on the earnings of a traditional IRA, and the option is to spread over a smaller tax bill by converting one-half of the IRA every year.

5. Withdrawal Benefit - Your successor will be able to withdraw the same amount of money that you usually withdraw or if you have unused contributions then your heirs can let the money grow on a tax-free basis.