| Traditional | Roth | Educational | SEP |
A retirement plan that lets you contribute each year up to the lesser of 100% of compensation or $5,000.00 if you are under age 50 or $6,000.00 if you are over the age of 50.
A retirement plan that lets you contribute each year up to the lesser of 100% of compensation or $5,000.00 if you are under age 50 or $6,000.00 if you are over the age of 50. However, unlike the traditional IRA, you make contributions to the Roth IRA after taxes. This allows you to make tax-free withdrawals after age 59 1/2.
With the Educational IRA, you can make after-tax contributions of up to $2,000.00 per year, per child (this is in addition to the maximum Traditional or Roth IRA contribution). Accumulated earnings in the Educational IRA can be tax-free if withdrawals are used to pay higher education tuition and most other education costs.
A SEP is a plan that provides employers with a simplified way to make tax deductible contributions toward their employees pension plans.
*Consult your tax advisor for more information.