Supercharge Your Retirement Savings with This Powerful Account

Written By

Manoj Prasad

IRAs are specialized investment accounts that allow tax-advantaged retirement savings and investing.

For 2023, the IRA contribution limit is $6,500, plus a $1,000 catch-up contribution if you're 50 or older.

For 2024, the limits rise to $7,000 per year, with the same catch-up amount.

There are two main types: traditional IRAs (potentially tax-deductible contributions) and Roth IRAs (tax-free withdrawals in retirement).

You can contribute to an IRA even if you have a 401(k) or other workplace retirement plan, but it may affect deductibility.

IRAs offer more flexibility than 401(k)s - you can use funds for buying a first home or paying for college.

With average annual stock market returns around 10%, regular IRA investments could grow to over $1 million.

Automated robo-advisors can help you invest your IRA if you don't want to pick investments yourself.

Maxing out annual IRA contributions and investing for long-term growth is the key to building substantial retirement wealth.