An IRA is a kind of individual savings plan that gets special tax treatment at the federal, and sometimes state, level. This tax-favored status is what distinguishes an IRA from an ordinary savings account. You have to play by the rules to get the tax savings -- and IRA rules are stricter than those for ordinary savings accounts.

At least 30 million US households owned some type of IRA as of mid-1998, according to a study by the Investment Company Institute, and the number is growing.

Many investors are unclear about the different rules for different IRAs -- traditional, Roth, Education, etc. It is important to review those rules and your own situation, possibly with a professional financial advisor, before deciding what is best for you.

An IRA is a kind of individual savings plan that gets special tax treatment at the federal, and sometimes state, level. This tax-favored status is what distinguishes an IRA from an ordinary savings account. You have to play by the rules to get the tax savings -- and IRA rules are stricter than those for ordinary savings accounts.

At least 30 million US households owned some type of IRA as of mid-1998, according to a study by the Investment Company Institute, and the number is growing.

Many investors are unclear about the different rules for different IRAs -- traditional, Roth, Education, etc. It is important to review those rules and your own situation, possibly with a professional financial advisor, before deciding what is best for you.