Understanding IRAs and Retirement Plans / Tax-Saving Strategies
History of IRAs:
Employee Retirement Income Security Act of 1974 (ERISA):
- Federal law establishing standards for private pension plans.
- Did not require employers to have pension plans, but enforces rules for those that do.
- Studebaker went out of business in the late ‘60s and couldn’t pay their employee pensions because they weren’t funded adequately.
- Taxpayers could contribute up to $1,500 per year and reduce taxable income by the…