IRA (Individual Retirement Account) represents a retirement account, usually offering various tax advantages and benefits in view of retirement savings.
There are several different kinds of individual retirement accounts. They are either provided by the employer or alternatively, the plan may be self-provided. They cover several types of accounts, explained below.
Roth IRA refers to individual plans with tax free contributions; the taxes do not have bearing on transactions. This type of account is named after the USA lawyer and Senator William Roth. The Traditional IRA represents an arrangement that allows the persons to pay income tax only after he begins to make withdrawals. However, early withdrawals result in considerable penalty fees. There are limits on the annual contributions made to the traditional and Roth accounts. The latter are stipulated by the government.
The SEP IRA is a provision designed for an employer (this may be a relatively small business entity or a self-employed professional). Contributions will be made in a similar manner to the traditional form, but the account is set in the name of the employee.
The Simple IRA refers to an employee type of pension plan according. Here, the contributions are made by the employee and the worker. The Self-Directed IRA entitles account holders to act on behalf of their plans with regard to investments.
The two additional types of individual retirement are referred to as Conduit and Rollover IRA. Some say that they can be regarded as anachronistic under the current tax regulations. The tax treatment of the above mentioned categories of retirement accounts, with the exception of Roth IRAs, are substantially similar in view of rules that regulate the distributions and withdrawals. Additional rules guide the arrangements under SEP IRAs and the SIMPLE IRAs. However, they are typically very close to the rules that regulate the qualified plans.
Free charting webinar
Mon, Nov 18th, 2013 12:00 PM - 1:00 PM EST
During the 60 minute session Paul Coghlan, founder of Coghlan Capital, looks at current charts for currencies, precious metals, US indices, highlighting turns and low risk entry points using the Median line analysis methodology.
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