I don't thinkl I want that.

 

IRA’s are intended for your retirement savings. This means that the IRS does not want you to take the money out until you reach “retirement age” – as determined by the IRS (this is age 59.5 in 2005). If you take your assets out of an IRA before that age, you may have to pay a 10% penalty on the amount you withdraw. You may have to pay income tax on that amount as well – this can add up!

Another pitfall is that there are limits on how much you can contribute to an IRA. It could get awfully expensive (in terms of lost revenue) for the IRS if you put all your money away and didn’t pay taxes on it. Therefore, you’re limited to contributing a certain portion of your earned income – and not a penny more! Because these limits change yearly, I suggest you head over to IRS.gov and search for “Publication 590” for all the details, rules, and regulations.