How To Open Up an IRA DC

Video Transcript

"This is financial adviser Patrick Munro talking about how to open up an IRA. And an IRA is an important concept for individuals that are being taxed at work and an IRA, of course, is an individual that can put money away from their work and their income from work and not have to pay taxes on it. The IRS allows you to defer those taxes. And therefore, not having to pay money out on taxes allows the money to grow compoundly over a period of time. The only time you're required to pay taxes on an IRA is when you're seventy and a half, and that's when the law of RMD takes over, Required Minimum Distribution. Go to a bank, go to a brokerage firm. Then there's forms that need to be filled out. They're IRS government approved forms. You can give the money to the financial professional and buy stocks, bonds, mutual funds, certificates of deposit. Any financial instrument can go into your IRA. But when you have it, you no longer have to pay taxes on the growth inside. A great financial building tool. This is Patrick Munro talking about how to build an IRA."