If you work for a firm that offers a 401K plan, it is advantageous for you to increase the percentage of payments as well. When the economy begins to pick up, you can then decide whether or not to transfer the 401K to individual retirement account later on.

For now, at least, contributing to an IRA can make all the difference upon retirement. While you can research traditional IRA plans as opposed to the Roth individual retirement account, the general consensus is that a Roth IRA would be most beneficial in the long run. You will find that traditional IRAs are taxable while the Roth IRA is not.

There are many companies online wherein you can determine which IRA best suits your needs. For example, with a Roth IRA plan that is maintained over a five-year period, you can withdraw the money at age 59½ without penalty. In addition, if you are under 50 years of age, you can contribute a maximum of $5000 and effective this year, if you are over 50 you can contribute an additional $1000.

Moreover, there is also a provision for those 50 years and older who can contribute more than the maximum amount in order to catch up to the amount you should have had if you had contributed earlier.

Given that the current economic recession is the number one concern for consumers in the US and abroad; and given that the price of food, gas, and other commodities has risen to all-time highs, more and more consumers are worried whether or not they can afford to retire. This is especially significant for baby boomers that are on the cusp of retirement or near it.

Experts are now suggesting that those who have just begun a career in the workforce open an IRA account and begin contributing now so that by the time they retire, they will at least have accumulated that which will afford them a comfortable retirement.

An individual retirement account is not only important for your future, but can increase the chances of retirement at the age you desire. We live in uncertain times; with the high cost of health-care, food, gas, and other necessities; the one question most asked is, "Can I afford to retire?" The only way to answer that question is to open an IRA account now so that your future will be less uncertain than it is now.