An IRA is an account that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis. The 3 main types of IRAs each have different advantages:
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*A distribution from a Roth IRA is tax-free and penalty-free provided that the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, death, disability, qualified first time home purchase. See US Treasury's Website for the latest rules and regulations.
The IRS may apply early withdrawl fees to IRA accounts. In addition, withdrawing a traditional IRA may result in a higher taxable earnings. You may also be assesed a fee for moving your IRA to another financial institution.