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Individual Retirement Account Definition
Friday, October 5, 5:31 PM ET

An invididual retirement account is used by individuals to earmark and earn funds to save for retirement. Various types of IRAs include SEP, SIMPLE, Roth, and Traditional.

Roth and traditional IRAs are set up by individuals who can contribute up to 100% of earnings up to a maximum dollar amount. Traditional IRA contributes may be tax deductible, while Roth contributions are not. SEP and SIMPLE IRAs are establisehd by employers, and contributions are made by individual participants.

For MarketNewsVideo.com, I'm Sayoko Murase.

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