Earnings and gains in a taxpayer's IRA generally accumulate tax free until they are withdrawn as taxable, nontaxable or partly taxable distributions. There are four kinds of IRAs, each of which offers tax advantages:

• Traditional IRA
  
  
• Savings Incentive Match Plans for Employees (SIMPLE) IRA
  
  
• Simplified Employee Pension (SEP) IRA
  
  
• Roth IRA
  

	Recall that a taxpayer establishes an IRA and makes contributions to it through a bank, credit union, brokerage firm, or other entity approved by the IRS.