 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| IRA |
INDIVIDUAL RETIREMENT ACCOUNTS:
Individual Retirement Accounts come in several form s and
have several types of investments. They are very flexible
in this regard and are an attractive way to accumulate
money for older age. There are rules regarding the use of
money in these accounts and are subject to change.
TRADITIONAL IRA:
This IRA is the original plan and is the most commonly
used. In certain circumstances the deposit is
tax-deductable but rules apply. Accumulation in this
account is not taxable until distribution when the taxable
amount is your annual withdrawal.
ROTH IRA:
Contribution to a Roth IRA are with after tax earned income
and therefore are not tax-deductable. The accumulation of
principal is not taxable at withdrawal and generally and
earnings are not taxable at withdrawal.
SEP (Simplified Employee Pension)PLAN:
SEP IRA is designed for small business and sole
proprietors. All employees must receive the same benefit
under this plan.
SIMPLE (Saving Incentive Match Plan for Employees) PLAN:
This is an employer sponsored IRA that is similar to a
401(k) but has much simpler rules and administration.
Individual Retirement Accounts come in several form s and
have several types of investments. They are very flexible
in this regard and are an attractive way to accumulate
money for older age. There are rules regarding the use of
money in these accounts and are subject to change.
TRADITIONAL IRA:
This IRA is the original plan and is the most commonly
used. In certain circumstances the deposit is
tax-deductable but rules apply. Accumulation in this
account is not taxable until distribution when the taxable
amount is your annual withdrawal.
ROTH IRA:
Contribution to a Roth IRA are with after tax earned income
and therefore are not tax-deductable. The accumulation of
principal is not taxable at withdrawal and generally and
earnings are not taxable at withdrawal.
SEP (Simplified Employee Pension)PLAN:
SEP IRA is designed for small business and sole
proprietors. All employees must receive the same benefit
under this plan.
SIMPLE (Saving Incentive Match Plan for Employees) PLAN:
This is an employer sponsored IRA that is similar to a
401(k) but has much simpler rules and administration.