7 Key Moments in IRA History

Estimated reading time: 1 minutes, 24 seconds

Did you know that the IRA is over 40 years old? The original IRA was established in 1974. However, so much has changed since its establishment.

While many moments in IRA history have impacted your ability to save for retirement, seven moments stand out among the rest.

  • IRA History1974: The original (or “Traditional”) IRA is available as a result of the Employee Retirement Income Security Act, but only to taxpayers not covered by a workplace retirement plan.
  • 1978: The Revenue Act establishes the Simplified Employee Pension (SEP).
  • 1981: The Economic Recovery Tax Act allows working taxpayers under age 70 ½ to contribute to an IRA, regardless of their coverage under a qualified plan.
  • 1996: The Savings Incentive Match Plan for Employees (SIMPLE) is implemented as a result of the Small Business Job Protection Act.
  • 1997: The Taxpayer Relief Act establishes the Roth IRA.
  • 2001: The Economic Growth and Tax Reconciliation Act introduces catch-up contributions for taxpayers 50 and older.
  • 2010: Revisions to Roth conversion rules are enacted. First made by the Tax Increase Prevention and Reconciliation Act of 2005, one revision eliminates the $100k AGI eligibility limit.

Somewhere between 40 and 50 million Americans currently hold one or more IRAs. You might already hold a SEP, SIMPLE, Roth or Traditional IRA. You may even have an employer-sponsored plan like a 401(k) or 403(b). Either way, it helps to consider what other investment possibilities and retirement accounts may be available to you.

Speaking of IRA history, by extension the Self-Directed IRA is also over 40. You’ve been able to self-direct retirement accounts since the creation of the IRA.

Want to learn more about IRAs? Visit our Resource Center for eBooks, videos and other educational materials to further your knowledge of IRAs and alternative asset investing.

 

 

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