An individual retirement account (IRA) is a tax-evaded account created to assist an employee during retirement. There are different ways to invest in an IRA to increase your savings and plan for a long term. This is a sole account that benefits the individual from taxation, building a trust, and builds the beneficiary’s mind with belief toward a longer vision while working. This is a retirement annuity by which the taxpayers will buy an annuity contract from an insurance company or any financial institution. Any beneficiary earning a taxable income probably 70 years and less can contribute to the IRA. Besides the usual retirement plans like 401(k)s, 403(b)s, and 457, an IRA is the best savings tool available in the country. If you are planning to invest for your child, many banks allow the parent or local guardian to invest or control their assets in the IRA until their child turns 18 or 21, which varies from state to state. An IRA was designed for beneficiaries during 1974 who did not have pension plans during retirement.

There are different kinds of IRAs. Listed below are the best IRA plans and all the ways in which one can increase their benefits.

• Traditional IRA
  The beneficiary is entitled to a tax evasion based on their income. If you are married and covered under the employee retirement plan, the adjusted income is between $98,000 and $118,000; however, if one among a couple is only covered, the income limit increases to $184,000 to $194,000 as on 2016 February statistics. Traditional IRA is one of the common best IRA plans.
  How to decide
  IRAs can be implemented for people who are not covered under any employee retirement plan and who have saturated on all the other tax-evasion programs or opportunities for saving. This plan is also taken by individuals to fund Roth IRA, despite the contribution limit via a specific strategy.
  Limit
  Currently, you can invest up to $5,500 for people aged 50 or less and $6,500 for people above 50 years of age.
• Roth IRA
  Similar to a traditional IRA, contributions done are returned after tax. Your account will always stay tax deferred, and it’s not on the current return. Must be of an age 59.5 and should have been maintaining an account that has been at least five years old. The money retrieved is always tax free. Individuals can have a contribution of $117,000 to $132,000 and married couples between $184,000 and $194,000. This is one of the best plans out there today.
  How to decide
  They are one of the best saving plans for young generations or employees in a low-tax scheme. Anytime after investing, your job entitles you to a higher tax scheme, which is the best strategy. They do not have a minimum distribution; hence, additional tax savings and savings opportunities grow throughout your life.
  Limit
  Currently, you can invest up to $5,500 for people aged 50 or less and $6,500 for people above 50 years of age.
• Rollover IRA
  Rollover IRA is one of the best IRA plans with a twist. A different savings plan, giving you an opportunity to consolidated different retirement accounts. If you have been covered under the workplace retirement account and have held up to multiple jobs, according to Bureau of Labor Statistics you can likely be a beneficiary of multiple retirement accounts.
  How to Decide
  You have an opportunity to invest in a high-cost IRA, expensive funding workforce retirement plan to a low-cost IRA. This makes it easier for you to consolidate all the other accounts without any hassle.
  Limit
  Currently, the beneficiary can have multiple accounts; hence, each workforce plan keeps varying according to financial norms of the company they have worked in.
• Inherited IRA
  If you are already the beneficiary of one of the IRA plans but your spouse is not, then inherited IRA allows the spouse of a deceased person to pass on the assets of the beneficiary to their account. This will assist the spouse of the deceased to inherit the operational IRA plan and continue the assets or money processes with the basic contributed amount.
  How to Decide
  The minimum amount is based on life expectancy of the beneficiary hence there is always a path to extend the tax evasion benefits based on your requirement. Always seek help if there is confusion on the required distribution into an Inherited IRA plan.
  Limit
  The amount can be extended based on the beneficiary’s wish. Every year can be modified and is completely tax deferred.
• SEP IRA
  It is a workforce employee retirement plan that can be for any kind of organization including startups, real estates, sole-proprietors, partnership programs, and corporate. The contributions are only done by the employee themselves. This is the best IRA plan for self-employed people or business owners.
• Simple IRA
  This is one of the best IRA plans as it allows both employee and employer to contribute to the savings account. This is one of the best IRA plans for small businesses with less than 100 employees. For employees aged 50 or less can contribute up to $12,500 and people aged 50 or more for $15,500.