What are IRA accounts?

An IRA (Individual Retirement Account) is a type of retirement savings account in the U.S. that offers tax advantages to help individuals save for retirement. There are several types of IRAs, each with its own features:

1. Traditional IRA: Contributions are often tax-deductible, which means you can lower your taxable income for the year you contribute. Taxes are paid when you withdraw the funds during retirement. Required Minimum Distributions (RMDs) must start at age 73.

   OPEN A TRADITIONAL IRA TODAY

2. Roth IRA: Contributions are made with after-tax dollars, meaning you pay taxes on the money before you put it into the account. Qualified withdrawals, including earnings, are tax-free in retirement. There are no RMDs during the account holder's lifetime.

   OPEN A ROTH IRA TODAY

3. SEP IRA: A Simplified Employee Pension (SEP) IRA is typically used by self-employed individuals and small business owners. Contributions are tax-deductible, and there are higher contribution limits compared to traditional and Roth IRAs.

4. SIMPLE IRA: A Savings Incentive Match Plan for Employees (SIMPLE) IRA is also aimed at small businesses. Both employees and employers can contribute, and there are matching contribution requirements from employers.

Each type of IRA has specific rules regarding contribution limits, eligibility, and tax implications, so it's often a good idea to consult with a financial advisor to determine which is best for your situation.