Will Opening An Ira For $5000 Help Me Save On Taxes

Yes. Depending on your financial situation you can open a Roth or Traditional IRA. The Roth IRA is generally recommended for people whose IRAs will be around for while - certainly for anyone under 40. The initial amount you put in is after-tax, meaning it does not give you an immediate tax deduction. But the investment grows tax-free, and when you pull your money out at age 59-1/2 you pay no taxes on the withdrawal. Alternatively you could invest in a Traditional IRA - here your initial investment is pre-tax, meaning you deduct the amount of your investment from your income taxes (assuming your income doesn't exceed certain limits). The investments in a Traditional IRA grow tax-deferred, so you don't pay taxes as long as the money is invested in the IRA, but you do pay taxes upon withdrawal. In general I would recommend the Roth IRA if you qualify. There is plenty of good information on the web about IRAs and how they work - do a Google search.