search4answers
  • Finance
    Declaring Bankruptcy: The Pros and Cons
  • Finance
    The Pros and Cons of Using a Smartphone as a…
  • Finance
    The Truth About Advance Payday Loans
search4answers
    • Health
      • Why Should You Get A Flu Shot?

        Why Should You Get A Flu Shot?

      • Potential Risks Of Getting A Facelift

        Potential Risks Of Getting A Facelift

      • Recognizing The Symptoms Of Bipolar Disorder

        Recognizing The Symptoms Of Bipolar Disorder

      • Pneumococcal Pneumonia Treatment

        Pneumococcal Pneumonia Treatment

      • Meningitis Symptoms

        Meningitis Symptoms

      • Epileptic Seizures: Myoclonic Seizures

        Epileptic Seizures: Myoclonic Seizures

    • Finance
      • Services To Help You With Tax Relief

        Services To Help You With Tax Relief

      • Student Loan Forgiveness: Are You Eligible?

        Student Loan Forgiveness: Are You Eligible?

      • 8 Steps to Successful Retirement Planning

        8 Steps to Successful Retirement Planning

      • How You Can Cut Your Cable Bill

        How You Can Cut Your Cable Bill

      • How Can You Get Out Of Your Long Term Car…

        How Can You Get Out Of Your Long Term Car…

      • Installment Loans Explained

        Installment Loans Explained

    • Mortgage
      • Are you Eligible for HARP Refinancing

        Are you Eligible for HARP Refinancing

      • What is a Reverse Mortgage and How Does it Work?

        What is a Reverse Mortgage and How Does it Work?

      • Who are the Top Private Equity Companies?

        Who are the Top Private Equity Companies?

      • Home Equity Conversion Mortgage (HECM): Explained

        Home Equity Conversion Mortgage (HECM): Explained

      • What Can you Do to Avoid Mortgage Foreclosure

        What Can you Do to Avoid Mortgage Foreclosure

      • The 4 Best Ways to Spend your Home Equity Loan

        The 4 Best Ways to Spend your Home Equity Loan

    • Auto
      • Do Diesel Cars Still Have a Future in America?

        Do Diesel Cars Still Have a Future in America?

      • Selling Your Car Privately: Pros and Cons

        Selling Your Car Privately: Pros and Cons

      • The 7 Most Expensive Cars in the World

        The 7 Most Expensive Cars in the World

      • Top 8 Facts about the 2017 RAM Trucks

        Top 8 Facts about the 2017 RAM Trucks

      • 5 Previously Expensive Cars You Can Now Buy for Less…

        5 Previously Expensive Cars You Can Now Buy for Less…

      • Look Out for These Problems Before Buying a Used Car

        Look Out for These Problems Before Buying a Used Car

    • Business
      • Internet Provider Review: Mediacom

        Internet Provider Review: Mediacom

      • 5 Formatting Essential Tips For Your Resume

        5 Formatting Essential Tips For Your Resume

      • Expert Secrets For Flea Control

        Expert Secrets For Flea Control

      • All Plumbers Need These 10 Tools

        All Plumbers Need These 10 Tools

      • Stay Focused While Working at Home

        Stay Focused While Working at Home

      • Small Business Internet Providers: 4 Great Options

        Small Business Internet Providers: 4 Great Options

    • Medical
      • How To Best Treat GERD

        How To Best Treat GERD

      • Symptoms Of Diabetic Neuropathy

        Symptoms Of Diabetic Neuropathy

      • Abdominal or Spleen Pain? Relieve Your Symptoms Now!

        Abdominal or Spleen Pain? Relieve Your Symptoms Now!

      • The Types of Breast Cancer

        The Types of Breast Cancer

      • Treatments Hep C

        Treatments Hep C

      • What is Renal Cell Carcinoma Cancer?

        What is Renal Cell Carcinoma Cancer?

    • Tech
      • Dispatch Field Service Ticketing Systems Software

        Dispatch Field Service Ticketing Systems Software

      • What Is Field Service Management?

        What Is Field Service Management?

      • Cloud security managed service

        Cloud security managed service

      • Best HEPA Air Purifiers for Home

        Best HEPA Air Purifiers for Home

      • Find The Best Cell Phone Plan For You

        Find The Best Cell Phone Plan For You

      • Before Online Dating There Was Video Dating

        Before Online Dating There Was Video Dating

    • Travel
      • Which Are The Best Airports To Travel Through?

        Which Are The Best Airports To Travel Through?

      • Helpful Tips to Get a Green Card Through Family Members

        Helpful Tips to Get a Green Card Through Family Members

      • 4 Ways to Securing a Green Card

        4 Ways to Securing a Green Card

      • If You Need to Renew or Replace a Green Card

        If You Need to Renew or Replace a Green Card

      • International Travel Regulations for Green Card Holders

        International Travel Regulations for Green Card Holders

      • Learn How To Maintain Green Card Status

        Learn How To Maintain Green Card Status

      The Difference between a Regular Savings Account and an IRA Savings Account

      by Stephanie Donnely

      A saving account is an all-inclusive term that includes regular savings account and IRA Savings Account. A Roth IRA refers to a savings account where the earnings accrue on tax-deferred basis but they are tax-free in case distributions are qualified. In regular savings accounts, earnings are normally added to one’s taxable income for the year that they earned. Even though IRA Savings Accounts have a few similarities with regular savings accounts, there exist a few differences between these 2 accounts as outlined below.

      IRA Savings Account, best ira savings accounts, ira roth, roth ira accounts

      Photo by 401(K) 2012 / CC by

      Regular Savings Accounts

      A savings account basically refers to an interest-bearing deposits account being held at a given bank or any other financial institution that’s providing modest interest rates. Financial institutions or banks might limit the total number of withdrawals that you can make each month from the savings account. Furthermore, they might also charge a fee unless you continue maintaining a certain average balance in the account on a monthly basis. In most instances, banks don’t provide checks with the savings accounts.

      Savings accounts usually allow the account holder to access his/her money when they need it without worrying about any penalties for early withdrawal. For instance, if you get involved in an accident with your car and you would like to get a new car, then you can use the savings account without experiencing any negative tax benefits. This is something that you might not be capable of doing with an IRA account. Furthermore, there’s no contribution limit on the savings accounts.

      However, you should also note that savings accounts do not offer any type of tax breaks like deductions for the contributions or the tax-sheltered growth. For instance, each year, you have to include any interests earned on your account in the taxable incomes for that year. This normally lowers the after-tax rates of return. Moreover, depending on the way that you’ve invested your money in an IRA savings account, you might achieve similar high rates of return due to the security being offered by the savings accounts

      IRA Savings Account

      An IRA (individual retirement account) refers to an investing tool that’s used by people to earn and also earmark funds for their retirement savings. As of 2016, there are 4 types of IRA savings accounts: Traditional IRAs, SIMPLE IRAs , SEP IRAs, and Roth IRAs. Sometimes known as individual retirement arrangement, best IRA savings accounts might consist of several financial products like bonds, stocks, or mutual funds.

      The main benefit of using an IRA savings account is their tax advantages. Whether you decide to use an IRA Roth or traditional IRA account, the money will grow tax-free in your account. Traditional IRA accounts offer the benefits of tax-deductible contributions. On the other hand, Roth IRA accounts don’t offer a deduction for the contributions. Whichever option that you choose, you will be getting a tax break which is not the same case with a regular savings account. However, there’s a high potential for the early withdrawal penalties when using IRAs compared to savings accounts.

      For traditional IRA savings accounts, any distributions before the age 59 are seen as non-qualified distributions, which are then subjected to the extra 10% tax penalty for the early withdrawals. Nevertheless, the disadvantage isn’t as bad for Roth IRA accounts because you can actually withdraw all your contributions anytime, penalty-free, and tax-free. Once you have withdrawn your contributions, your earnings are then taxed and penalized.

      Featured Image Source: Thinkstock/© BrianAJackson

      Posted on May 22, 2023
      Privacy Policy | Terms Of Use | Contact