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Learning the different types of retirement accounts

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For those concerned about their financial well-being during retirement, a recent FOX Business article inspected some popular varieties of individual retirement accounts (IRAs).

Traditional IRAs allow people to deposit up to $5,000 a year and deduct the funds on tax returns. Those over the age of 49 are allowed to deposit an additional $1,000. While there is no minimum age to open an IRA, there is a maximum age of 70 to contribute, and a 10 percent penalty is charged if funds are removed before the account holder is 59 and a half.

Roth IRAs have the same contribution limit as traditional accounts, but they allow people to pay taxes on contributions. This way, account holders don't have to pay taxes later in life when they remove funds from their accounts. Roth IRAs also allow people to continue contributing after the age of 70.

Self-employed people interested in IRAs can look into SEP-IRAs, SIMPLE-IRAs and Single 401(k)s.

In addition to IRAs, people may want to consider the benefits of annuities. These accounts grow on a tax-deferred basis, and CNN notes that annuities generally don't have an annual contribution limit. It asserts that people closer to retirement age who need to play catch up on their finances can benefit most from annuities. 

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