What is an IRA?

With an ICMA-RC Vantagepoint IRA, you can take advantage of another tool for your overall retirement savings portfolio.

An Individual Retirement Account, or IRA, is a special tax-advantaged account that allows you to build savings for your retirement. One of the primary benefits of an IRA is that your investment's earnings compound tax-deferred. Other potential tax benefits include:

• Roth IRAs - While you contribute to them on an after-tax basis, you have the opportunity to withdraw earnings on a tax-free basis, assuming certain conditions are met.
• Traditional IRAs - You may be able to receive a tax deduction for your contributions. If you are an active participant in an employer-sponsored retirement plan (such as a pension plan or 457 plan), you must have modified adjusted gross income (MAGI) below established limits in order to make deductible contributions. If you and/or your spouse do not actively participate in an employer-sponsored retirement plan, you may make fully deductible contributions to a Traditional IRA regardless of your MAGI.

For more information, see our Deciding Which Vantagepoint IRA Is Right for You table, or use our free online IRA calculators.