IRA Contributions

With a shaky economy, deficits rising in the industrial countries of the world, the U.S. Dollar eroding value each and every day, and the growing trade deficit between the West and the East, it can be difficult for the average person to invest in the future and to save for retirement with so many things poised to go terribly wrong. Thankfully, though, there are options for those looking for shelter from the storm, and who want to find a safe and sane place to put their money for the future.

Many are turning to Roth IRA contributions in order to save for retirement and to enjoy a rate of return that actually beats inflation, without the risks and potential disasters that await those investing in stocks, bonds, treasuries, commodities and currencies.

Here are four great ways to make a Roth or a Traditional IRA account work for you, that you need to know to take full advantage of the benefits available.

Pre-tax Contributions Allow More Money In Your Pocket And In The Account

One of the ways in which many people are taking advantage of IRA accounts is that, through pre-tax contributions, there is more money going into the IRA account, without a corresponding hit to your monthly bottom line. Because the money is pre-tax, you still have some liquidity in your monthly earnings that straight savings accounts cannot provide.

High Interest Rates Beat Rampant Inflation

One of the best benefits to IRA contributions is that IRA accounts provide a rate of return that is far higher than a savings account or even a certificate of deposit, allowing your money to beat inflation in a way that nothing else can. IRAs provide protection from wealth erosion better than just about anything else that is considered a non-risk financial vehicle.

Raised Contribution Limits Allow Higher IRA Contributions

Plus, with the recently raised limits on contributing to an IRA account, both Roth and Traditional, you can contribute more of your pre-tax earnings into an account for future growth and stability.

Taxes Deferred Until Withdrawal Can Help In Short Term Tax Picture

And, because IRA contributions are pre-tax, the taxes are deferred until the time of withdrawal. If you made more money than you expected to, or you are on the bubble between two tax brackets, contributing to an IRA can be just the thing to nudge you down to a lower bracket, while still being able to save for retirement. Find out more about Roth IRA Income Limits or Roth IRA Limits .