Tax Deferred Savings (IRA)

Tax Deferred Savings (IRA)

IDS 19999/24/12

Ryan CowanBlake Cowan(not related)

What is Tax Deferred Savings?Savings plan or accountRegistered with governmentProvides deferral of tax

obligationsPortion of current income 401K Plans

Individual Retirement Account (IRA)

Retirement planTax advantages Benefits taxpayers or their beneficiaries

Problems$142 Billion per year$788.3 Billion in the next 5 years2nd largest “tax expenditure”

What This Means for YouStart saving money earlyMoney for retirement Use savings at 59 1/2

Sources http://www.americanprogress.org/issues/open-gov

ernment/news/2011/01/19/8862/tax-expenditure-of-the-week-tax-deferred-retirement-savings/

http://en.wikipedia.org/wiki/Individual_retirement_account#Funding