Retirement Account Types
There are several types of retirement accounts.
|Traditional IRA Account||An Individual Retirement account in which funds grow tax-deferred until they are withdrawn. Contributions may or may not be tax-deductible and distributions taken before 59 1/2 will be taxable and subject to a penalty. Distributions taken after age 59 1/2 will be taxable but not subject to a penalty. Distributions become mandatory when the account owner reaches the age of 70 1/2 or 72.||IRA Application Form|
|Roth IRA Account||A type of Individual Retirement Account (IRA), which allows funds to grow tax-free, subject to certain restrictions. Taxes are paid on contributions to a Roth IRA, but qualified withdrawals are tax-free. There is no requirement to begin taking distributions.||IRA Application Form|
|SEP IRA Account||A SEP IRA is an ideal retirement plan for a one-person company or a small business. Contributions are made by the company. Employee contributions are not permitted.||IRA Application Form|
|SIMPLE IRA Account||A plan for small organizations that allows employees to contribute on a pretax basis, and requires the employer to make either matching contributions or a nonelective contribution for all eligible employees.||SIMPLE IRA Application Form|