An IRA is nothing more than a self-funded pension. You don't pay taxes on what you put in, but you pay earned income tax on what is pulled out. If people looked at them as a panacea ... No taxes in ... No taxes out .... they didn't read the LARGE print. Personally, I've never been in favor of IRAs, HR-10s or 401Ks. The 401s started out kinda nice .... Most were "You put in a dollar and we'll match it with 2 or 3". Then is was, "For every dollar you put in, we'll match it". Then it was, "You put in two dollars, we'll kick in one". Now, in many instances, it's "You put in a dollar .... Good for you ...".