9.8 Individual Retirement Plans
The federal government provides incentives for citizens to save for retirement by granting tax-favored treatment in eligible plans. The IRA is the most notable. The family of IRAs includes the following.
- The traditional tax deductible IRA
- The traditional non-tax deductible IRA
- Roth IRA
- Spousal IRA
- Education IRA
In order for IRA participants to take a deduction for their contribution, the following factors are considered.
- Is the participant covered by an employer-sponsored retirement plan?
- What is the participant's income?
