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An Individual Retirement Account or IRA is a type of investment savings plan which is specifically designed for the retirement of a person who made contributions to this investment. All individuals who are earning a taxable income through employment such as salaries, wages, service fees, commissions, tips, and bonuses are allowed to contribute to an IRA. There are various IRA plans to choose from, and the investors must be aware of a IRA rule and regulation that govern each plan.

For instance, the very important thing that we have to find out is the eligibility of a person to make contributions to a certain IRA plan. For example, Traditional IRAs require the contributors to be younger than 70 and 1/2 years of age. Otherwise, they will not be allowed to make contributions to this IRA plan any more. With a Roth IRA, on the other hand, there is no age limit when it comes to making contributions, as long as the contributors are earning income which are within the income limit that is set by the Internal Revenue Service.

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