Money is precious! Your retirement money is precious! Too many people do not take advantage of IRA’s available to them. Often people will put this task off. The time to start saving is today. If you start young and follow the plan you will have financial security when you are older.

Decide which type of IRA is right for you. In a Roth IRA you put money in after taxes and any earnings on that money will be tax free for retirement. In a traditional IRA the money is put in before taxes. More simply put if you put money in a traditional IRA you can take the deduction on your tax return and you will pay less taxes. (Both federal and state).

There are income limits on IRA’s.

Roth: For 2009 the income limit is $101,000 for single, $166,000 for married.

Traditional: For 2009 the income limit is $55,000 for single, $89,000 for married. If you exceed these limits you can still contribute but you will need to contribute on an after tax basis.

You will need to find an institution to start your IRA. You will need to do your homework here. There are several considerations. How much do you have to invest? If you have a hundred dollars perhaps you would like to investigate an IRA at your local credit union. If you have a thousand dollars consider a mutual fund company or a brokerage firm.

Invest every pay period. With most institutions you can have automatic withdrawals set up from your checking account. In addition should you make overtime or bonus consider putting a portion of that money into your IRA.

Perhaps you have a 401K; you may choose to have an IRA as well putting a percentage of your overtime or bonus money into an IRA. Your money can really add up over time.

Contribution limits are $5000 ($6000 for those 50 and older) per person. Do not exceed the contribution limit.