What is an IRA?
An Individual Retirement Account (IRA) is an account that promotes saving for retirement by providing various tax advantages.
Investing in an IRA can be a great way to supplement any employer-sponsored retirement plan you may have. IRAs can help you gain access to a potentially wider range of investment options to diversify beyond your employer-sponsored plan. There are several types of IRAs, each with unique requirements and consequences. When choosing an IRA, you’ll want to consider your personal circumstances and retirement savings goals.
Traditional IRAs, Roth IRAs, and Rollover IRAs are the 3 most common types of individual retirement accounts. Variations of common IRA types include Inherited IRAs and Custodial IRAs. There are 2 more types of IRAs, the SEP IRA and SIMPLE IRA, which are intended for self-employed individuals and small businesses. Each IRA has its own characteristics to evaluate when setting your retirement savings goals.
Nonqualified withdrawals from an IRA are subject to a 10% federal tax penalty.
When estimating how much income you'll need in retirement, you may discover your employer-sponsored savings plan isn't able to achieve your goal on its own. If your 401(k) is not able to grow enough to meet your savings needs, contributing to an IRA can help make up the difference. Learn why an IRA may make sense even when you've got a 401(k).
Learn more about IRAs
Rollover an old 401(k) to an IRA
- Understand your rollover choices.
- See the pros and cons of rolling over to an IRA.
- Learn the steps of the IRA rollover process.
- How much can I contribute to my IRA each year?
- I contributed too much money to my Traditional IRA. What can I do if the tax-year deadline has passed?
- I contributed too much money to the Roth IRA. What can I do if the tax-year deadline has passed?
- Can I borrow from my IRA? What are the rules?
- Can I make early withdrawals from my IRA?
- What is my Modified Adjusted Gross Income?
- How do I invest funds within my account?
- What is an IRA Certificate of Deposit (CD)?
- Will Schwab allow me to invest my IRA funds in CDs?
- Where can I find IRA CD interest rates?
Learn More about Schwab IRA accounts
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