An individual retirement account which allows for annual tax-deductible contributions. May also be funded by a transfer from an existing tax-deferred IRA, or a rollover from a qualified plan (401k, 403b, etc.). Earnings on contributions are tax-deferred until withdrawn after age 59½. Upon withdrawal from the account, distributions are subject to income tax.
An individual retirement account that is funded with after-tax contributions. May also be funded by transfer from an existing Roth IRA or rollover from a Roth 401k. Earnings on Roth IRA contributions are not subject to taxation. And contributions (not earnings) can be withdrawn free of tax at any time. Earnings may be withdrawn from the Roth IRA tax-free after age 59½.
SEP (Simplified Employee Pension) IRA accounts provide an easy, flexible, low-cost retirement option for those who are self-employed or a partner/owner of a corporation. A SEP retirement plan is basically a Traditional IRA that allows you to make larger annual contributions for yourself and your employees.
SIMPLE (Savings Incentive Match Plan for Employees) IRA accounts provide small business owners an easy way to make contributions toward their employees’ and their own retirement. A SIMPLE account is for self-employed individuals or small businesses with 100 employees or less.