Investing at Home

But IRAs can be a simple and effective way to save for retirement, either on their own or as a supplement to another retirement program. You can contribute up to $5,500 to an IRA each year; however, your contribution cannot exceed 100 percent of your earned income. Also, if you're over age 50, you can contribute an extra $1,000.

There are many varieties of IRAs that can help you reach your retirement goals. Here are four main categories and how they can work for you.

• Traditional IRA
  A traditional IRA allows you to contribute up to $5,500 into a tax-deferred account and deduct your contribution from your current income taxes in most cases.
• Roth IRA
  Roth IRAs allow your contributions and earnings to grow tax-free. Unlike traditional IRAs, contributions to Roth IRAs are not deductible from current income tax, which is another major difference between the two plans.
• Rollover IRA
  When you change jobs, you may have money invested in your employer's retirement plan. A rollover IRA allows you to move those assets from your employer into a traditional IRA. It also helps you avoid the penalties and taxes accompany a lump-sum distribution from the plan.
• Spousal IRA
  Even stay-at-home moms and dads can put money away for retirement. You can invest up to $5,500 in a traditional or Roth IRA, as long as the working spouse has enough earned income to fund the IRA.

Any tax or legal information in this website is merely a summary of our understanding and interpretations of some of the current income tax regulations and is not exhaustive. Investors should consult their tax advisor or legal counsel for advice and information concerning their particular situation. Wells Fargo Funds Management, LLC, Wells Fargo Funds Distributor, LLC, nor any of their representatives may give legal or tax advice.