A traditional or Roth IRA can be a good flexible plan when your employer does not provide a retirement plan. A traditional IRA can provide tax-deferred savings, and contributions may or may not be tax-deductible, depending on household income and access to employer retirement savings plans. A Roth IRA provides tax-free interest on investment earnings. There is no up-front tax deduction, however, because Roth IRAs are funded with after-tax dollars. If funds are limited, look for financial service providers that have low-entry IRA plans. Some may require a commitment of only $25 or $50 per month. If you are investing in mutual funds, their prospectus will contain information about the amount required to invest. We would like your feedback on this Personal Finance Frequently Asked Question.

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