IRA’s are a function of Congresses’ desire to ensure access for all employees to funding their retirement. IRA’s operate in a similar fashion to Section 408 retirement plans. Individuals are limited to a tax deductible contribution of $5,500 or $6,500 if age 50 or older. There are conditions and restrictions involved but the best value relates to the long term tax deferral of earnings throughout the life of the investment.
The American Benefits Council estimates that about 80% of all American workers have access to an employer sponsored retirement plan. This means that 20% of the workforce has no access to a formal retirement plan. […]