IRA (Investment Retirement Account)

Question 1

Penalty Tax

Answer 1

The amount of money you need to pay when withdrawing money from your retirement account in addition to regular tax if you withdraw this money before the age of 60.

Question 2

Tax bracket

Answer 2

the percentage of money from IRA or salary you need to pay once you withdraw money from it.

Question 3

Captial gains tax

Answer 3

The tax that takes a small percentage of money from the profits you make when trading stock in a non IRA account investment account

Question 4

IRA vs. Non IRA money

Answer 4

IRA builds up to more money you can withdraw post retirement due to the lack of tax placed on the principle investment amount( up to 5000 under 50) and lack of capital gains taxes. IRA is preferrable