 TITLE: Step-by-Step Checklist to Opening an IRA CONTENT: Before You Invest\n-----------------\nDeciding to invest in an IRA will depend on your other retirement options, your employment situation and whether you are investing for yourself or yourself and your spouse. Find your situation below and go from there.\n*   **Your employer doesn't offer a retirement plan.** In this case, an IRA is one of your best options for building retirement savings.\n*   **Your employer offers a retirement plan such as a 401(k).** Even if you contribute to your company's 401(k) plan, you can also invest in an IRA. An IRA can help you diversify investments or save more than your 401(k) allows. Things to keep in mind:\n    *   If you or your spouse contribute to an employer-sponsored 401(k), you may not be able to deduct all your contributions to a traditional IRA from your taxes.\n    *   If the employer matches a percentage of 401(k) contributions, fund the 401(k) up to the employer match amount before opening an IRA.\n*   **You recently left a job that had an employer-sponsored 401(k) or are planning to.** In this situation, consider a rollover IRA.\n    *   A rollover IRA allows you to transfer the savings in your employer-sponsored 401(k) plan when you leave or change jobs.\n    *   Some employers let you keep funds in their 401(k) after you leave, but a rollover IRA can reduce fees and give you more control over your investments.\n*   **Your spouse doesn't work.** You can fund a spousal IRA for your non-working spouse with your income. This increases the total amount you can save.\n*   **You own your own business.** Consider a SEP-IRA or SIMPLE IRA. Both plans are available whether you are a one-person business or have employees, and both allow you to save more than the annual limit for traditional and Roth IRAs. Your accountant or financial advisor can help you determine whether an SEP-IRA or SIMPLE IRA is best for your situation.\n    *   SEP-IRA (Simplified Employee Pension): Employers may contribute for eligible employees (including themselves). Employees manage their plans but cannot contribute.\n    *   SIMPLE IRA (Savings Incentive Match Plan for Employees): Employees manage their plans and can contribute. Employers must contribute for eligible employees (including themselves). END