Individuals, whether they are covered by a pension or not, are now permitted to save money on a tax-deferred basis in a qualified IRA plan. Although money can be withdrawn, a 10% penalty has been placed on those assets withdrawn prior to the individual turning 59 1/2, in addition to the normal taxes, which must be paid upon withdrawal. An individual can set up his own plan with a bank, insurance company, brokerage house or mutual fund. A company can also deduct an agreed-upon amount from employees' paychecks and send it along to a designated agent, or set up its own plan where managers are selected to manage the assets.

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