Individual Retirement Accounts
Individual Retirement Accounts (also known as Individual Retirement Arrangements) allow you to invest with significant tax advantages. The specific advantages depends on which account you choose. There are two basic types of IRAs: the Traditional IRA and the Roth IRA.
More about what IRA is right for you
The earnings in IRAs grow at tax-deferred or tax-free basis, a significant advantage over regular accounts. IRA contributions can be made for the prior tax year up until April 15. In other words, you have until April 15, 2006, to make a contribution for the 2005 tax year.
Other IRA Options
- IRA Transfers and IRA Rollovers: If you have an existing IRA at another institution, Parnassus Investments will manage the paperwork for you to transfer your account.
- Direct Rollovers: If you have a 401(k) or other retirement plan such as a 403(b) from a previous employer, you can rollover your assets into an IRA and keep them in a tax-deferred account.
- SEP-IRA: SEP-IRAs are accounts set up by employers for the benefit of their employees and are ideal for small businesses.
Before opening an IRA, read our IRA Disclosure Statement [pdf], which has helpful information on IRAs and detailed information about how IRAs work.