Introduction An individual retirement arrangement (IRA) is a personal savingsplan that offers you tax advantages to set aside money for yourretirement or, in some plans, for certain education expenses. Twoadvantages of an IRA are: Granada guest houseYou may be able to deduct your contributions in whole or inpart, depending on the type of IRA and your circumstances, and Generally, amounts in your IRA, including earnings andgains, are not taxed until distributed, or, in some cases, are nottaxed at all if distributed according to the rules. Chapter 1discusses the rules for traditional IRAs (those that arenot Roth, SIMPLE, or education IRAs). Chapter 2discusses the RothIRA, which features nondeductible contributions and tax-freewithdrawals. Chapter 3discusses the education IRA, which can be setup to finance higher education expenses. Chapter 4discussessimplified employee pensions (SEPs), under which IRAs can be set up toreceive contributions from employers under SEP plans. Chapter 5discusses SIMPLE IRAs, which are IRAs set up to receive employercontributions under a savings incentive match plan for employees(SIMPLE). This publication explains the rules for setting up an IRA,contributing to it, transferring money or property to and from it, andmaking withdrawals from it. Penalties for breaking the rules are alsoexplained. Worksheets, sample forms, and tables, listed underAppendices Porto cheap hotelsin the contents, are included to help you complywith the rules. These appendices are at the back of this publication.