Saving money for retirement is a great idea. When it comes to retirement plans, one of the options you have is to start an IRA or Individual Retirement Account. If you have decided to start an IRA, you first have to understand some IRA basics. You have to understand that IRA isn’t the investment itself but rather a retirement account that holds your investments. There are basically three types of IRA namely the traditional IRA, Roth IRA and SIMPLE IRA.
Those who have IRA investments must be aware that there is an increase for the 2013 IRA contribution limits. This is definitely a good news for every IRA owner because this means that they are allowed to set aside a bigger amount of money for their retirement. This also means that they have bigger chances of achieving their financial goals upon reaching retirement age, and so they can enjoy more.
Since based on the IRA rules, the contribution limits for the Individual Retirement Accounts are being updated every year based on the cost-of-living changes, it is essential you to be aware of and stay updated with the current IRA contribution rules and limits so that you can get the most out of your IRA.
This year 2012, there are revised contribution limits for Traditional IRA, Roth IRA, SIMPLE IRA, and SEP IRA.