An individual retirement account (IRA) is a way for you to save for retirement while enjoying various tax advantages. Most IRAs allow you to take a tax deduction for contributions and provide tax-deferred growth of contributions and earnings. Roth IRAs grant no immediate tax deduction, but they provide for tax-free growth and distributions. Some IRAs, such as SEP and SIMPLE IRAs, also allow for employer contributions. While IRA contributions are generally beneficial for your long-term investment plan, you can reduce or eliminate them if you choose.
Step 1
Stop making contributions. For all types of IRAs, you can control the amount of contributions you wish to make. Whether your account is a traditional IRA, a Roth IRA, a SIMPLE IRA or a SEP IRA, no one can force you to make a contribution.
Step 2
Earn more income. For some types of IRAs, you cannot contribute if your income is above a certain level. For example, in 2010, if you earn a modified adjusted gross income of $120,000 or more, you are not permitted to make a Roth IRA contribution.
Step 3
Talk to your employer. For some types of employer-sponsored IRA plans, your employer can make annual contributions on your behalf. While IRS regulations make some of these contributions mandatory, others are not. For example, with a SIMPLE IRA plan, employers may only have to make matching contributions to your account. If you do not make any contributions, then your employer will not make any either. For other types of plans, you may be able to refuse employer contributions.
Step 4
Decrease your contributions. Just as you have the power to eliminate your IRA contributions, you can simply reduce them if you do not want to eliminate them. Similarly, you can reduce the percentage of your income that you voluntarily contribute to an employer-sponsored plan, which may also reduce the amount that your employer contributes to the plan on your behalf.
Step 5
Grow older. Once you reach age 70 1/2, you cannot make any further contributions to your IRAs, unless you have a Roth IRA.
Step 6
Leave your job. If you cannot prevent your employer from making contributions to your account, you can prevent contributions by quitting or retiring. While this is a drastic step, it will decrease contributions to your account.
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