Retirement Savings Accounts
Types of Retirement Accounts
Individual Retirement Accounts
A Traditional Individual Retirement Account (IRA) is a type of
retirement plan that allows an individual to make contributions that grow
tax-deferred. Contributions to a Traditional IRA may be tax-deductible.
Distributions are taxed when withdrawn from a Traditional IRA.
A Roth Individual Retirement Account (IRA) is a type of retirement plan that allows an individual to make non-deductible contributions that grow tax-deferred. Distributions are generally not taxed when withdrawn from a Roth IRA.
Employer-Sponsored Retirement Plans
A Simplified Employee Pension Individual Retirement Account (SEP-IRA) is a written plan that allows small business owners a simplified method to make contributions to their employees’ retirement or their own if they are self-employed. This type of retirement plan allows contributions to grow tax-deferred.