| ROTH IRA's - |
Established
in 1998, the Roth IRA allows investors the opportunity to invest after-tax dollars in an
IRA. The money within the Roth will grow tax-free and withdrawals or distributions will be
tax-free as well provided you meet the necessary criteria. Click here to find out
more. |
| TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNT (IRA) - |
Anyone
under age 70 1/2 who has earned income, or whose spouse has earned income may invest in a
traditional IRA. Contributions may be deductible, and earnings are not taxed until you
start withdrawals. |
| 401(k) PLANS - |
Company
offered retirement program. Monies that you contribute will come directly out of your
paycheck prior to being taxed. Choice of investment is normally up to you, within the
guidelines established by your employer. Contributions and Earnings will be taxed at the
time of withdrawal. Your company may match a certain amount of your contributions. |
| 403(b) PLANS - |
Available
to teachers, healthcare workers and employees of nonprofit organizations. Rules,
advantages, and disadvantages are similar to 401(k) plans, but the money MUST be invested
in mutual funds or variable annuities. |
| SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRA's) - |
IRA
for the self-employed with certain differences. Contributions and earnings are not taxed
until you begin withdrawals. Contributions are a percent of earned income -vs- a flat
dollar amount. |
| SAVINGS INCENTIVE MATCHING PLAN for EMPLOYEES (SIMPLE-IRA's) - |
Allows
employers with 100 or less employees to establish a company-sponsored retirement plan.
Monies are not taxed until withdrawn. Plan has certain guidelines for both employee and
employer contributions. |
| KEOGH PLANS - |
IRA's
for the self-employed with more generous limits. Contributions are tax-deductible and
earnings grow tax-deferred. Taxes are paid at time of withdrawal. |
