INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)
IRAs let individual wage earners save up to $2,000 per year, while deferring income taxes on that money and the dividends it earns. A wage earner with a non-working spouse may save up to $2,250. Under current taxes laws, the full tax benefit of IRAs are available to persons not covered by qualified pension plan, to all single tax filers earning less than $25,000 a year, and to joint tax filers earning combined incomes of less than $40,000 (even if they are covered by a qualified pension plan). All IRA dividends are tax-deferred, regardless of eligibility for tax deductions.