Types of Retirement Accounts

Individual Retirement Accounts

Traditional IRA

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 Distributions are taxed when withdrawn from a Traditional IRA.

Roth 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 Distributions are generally not taxed when withdrawn from a Roth IRA.

SEP-IRA

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.

Simple IRA

A Savings Incentive Match Plan for Employees (SIMPLE IRA) is a retirement plan that may be established by employers, including self-employed individuals. The SIMPLE IRA allows eligible employees to contribute part of their pretax compensation to the plan. SIMPLE IRA plans are cost-effective and easy to establish and maintain.

Educational Savings Accounts

Coverdell Educational Savings Account

Coverdell Educational Savings Account

A Coverdell Education Savings Account is an account established to pay for qualified education expenses. Earnings within the account grow tax-deferred and are distributed tax-free when they are withdrawn to pay education expenses.