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This IRA is designed for individuals who want to save tax-deferred dollars and
want their annual contributions to be tax-deductible. However, penalty-free
withdrawals may be made at any time for certain medical and education
expenses or the purchase of a first home.
The major benefit of a Roth IRA is tax-free earnings growth. Although
contributions to the Roth IRA are not tax-deductible, the contributions can be
removed at any time without federal taxes or penalties. You are not required
to receive distributions at 70 1/2 and, in most cases, you can pass your Roth
assets to your heirs free of federal income taxes. Withdrawal of earnings is
tax-free if certain distribution rules are met.
This savings account is specifically designed to provide a tax-free way to save
for education expenses for any minor child until the age of 18 on a
nondeductible basis. This account can be used to pay for elementary and
secondary education (K-12) expenses incurred in a public, private or religious
school, as well as college, technical or postgraduate work. Earnings grow
tax-free, and withdrawals for qualified education expenses are also tax-free.
This low-cost retirement plan is designed for small businesses and the selfemployed
business owner. This would include sole proprietors, partnerships,
S-corporations and corporations. The SEP plan enables you to make
discretionary, tax-deductible contributions for employer and eligible
employees. The employer may choose to make the plan less restrictive.
Earnings and contributions are tax-deferred.
This simplified version of a 401(k) or SEP plan is an
affordable retirement plan option geared for companies
with less than 100 employees. Participants make salary
deferral contributions, and employers are eligible to
make matching contributions. Employers can deduct
the cost of the elective deferrals. Contributions and
earnings are tax-free until withdrawn.
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