What Are the Tax Advantages of an IRA?

Video Transcript

"This is financial advisor, Patrick Munro, talking about what are the tax advantages of an IRA. An IRA is quite simply an individual retirement account that's blessed by the IRA, and it allows you to put money away on a tax-deductible basis, and you don't have to pay taxes on the internal growth of that investment. It's a terrific benefit for individuals that are looking to grow their funds for the time when they're not working with the company anymore. The key is to maximize your contributions up to your allowable limit, and your limits do change with the company over time, based on the fact that you are constantly getting pay raises with the company. Tax advantages are very key in an Individual Retirement Account, or IRA, because if you can put that maximum allowable contribution in and your investment performs well, you can really receive the benefit of not having that money taxed until you are later in life. This is Patrick Munro, talking about the benefits of tax deductibility on IRA's."