Retirement Planning

Traditional IRA Individual Retirement Account

• Allows you to defer taxes on your earnings until you withdraw
• Certain contributions may be tax deductible
• Must be under the age of 70½
• Must have earned income
• Contribution limits - contact your tax advisor

Roth IRA

• Non deductible contributions
• Tax free withdrawals for certain distribution reasons after a 5 year holding period.
• Must have earned income
• Modified adjusted gross income (MAGI) limits apply.
• Contribution limit- contact your tax advisor
• There is an annual aggregate amount that may be contributed to a Traditional and a Roth IRA

SEP-Simplified Employee Pension

• Retirement plan established by employer
• Employer may contribute a certain % of each eligible employee’s compensation directly to employees IRA
• Any employer may establish a SEP even if there are no employees.
• Contributions may be tax deductible- -contact you tax advisor

SIMPLE IRA

• Small business, employing 100 or fewer
• Investment decisions made by the employee regarding his own IRA
• Affordable and easy to implement
• Eligible employees may contribute each year through payroll deductions, even if other employees defer nothing
• Employers offer matching contributions which may vary
• Generous tax advantages to employer and employees
• Distributions are generally taxed under rules that apply to Traditional IRAs.
• NOTE: Your tax advisor or accountant is your best source to help you decide which IRA account is best for you.