Traditional IRAs

A Traditional IRA is a personal savings plan that gives you tax advantages for saving for retirement. Contributions to a Traditional IRA may be tax deductible–either in whole or in part. Also, the earnings on the amounts in your IRA are not taxed until they are distributed. The portion of the contribution that was tax deductible also does not get taxed until distributed.

You can set up and make contributions to a Traditional IRA if:

You (or, if you file a joint return, your spouse) received taxable compensation during the year

You can now make contributions to traditional IRAs beyond the previous age limit of 70½ years, thanks to the SECURE Act.

You can have a Traditional IRA whether or not you are covered by any other retirement plan. However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. There is no income eligibility limit to contribute.

Download Traditional IRA Forms or call 1-800-498-7120 to request a kit.

Roth IRA

Unlike a Traditional IRA, a Roth IRA offers tax-deferred growth and potentially tax-free withdrawals once you reach retirement. For example, contributions to a Roth IRA are not tax deductible while contributions to a traditional IRA may be deductible. However, while distributions (including earnings) from a traditional IRA may be included in income, the distributions (including earnings) from a Roth IRA are not included in income as long as you satisfy the requirements.

Benefits of a Roth IRA

• Contributions can be made to your Roth IRA after you reach age 70½
• You can leave amounts in your Roth IRA as long as you live
• Withdrawals of contributions are free from federal income tax
• Withdrawals of earnings are free from federal income tax if you satisfy the requirements:
  • If it been at least 5 years from the beginning of the year in which you first set up and contributed to a Roth IRA
  • You are age 59½ or older at the time of distribution
  • If the distribution being used to buy or rebuild a first home
  • If you have become disabled or have passed away

If you do not meet the requirements, the portion of the distribution allocable to earnings may be subject to tax and it may be subject to the 10% additional tax.

Download Traditional IRA Forms or call 1-800-498-7120 to request a kit.

Rollover IRA

Consolidate all of your IRAs into one convenient account.

A rollover is the process of moving your retirement savings and assets from one retirement plan to another retirement plan. The contribution to the second retirement plan is called a “rollover contribution.”

A 401(k) rollover from a previous employer's plan could be beneficial if you are changing employers, retiring or already enjoying retirement. Rolling over to an IRA usually allows you to keep your savings tax-deferred, avoids early withdrawal penalties and typically gives you a broader choice of investments.

To consolidate all of your IRAs into one convenient account, open an Investrade Rollover IRA.

• Contact your former employer(s) for their rollover requirements
• Notify your former plan of your eOption account number and transfer instructions

Download Traditional IRA Forms or call 1-800-498-7120 to request a kit.

You may be subject to fees or other limitations with respect to a rollover transaction or account consolidation.

Investrade does not provide tax advice and you should seek the advice of a tax-planning professional with regard to your personal circumstances and fully understand how an investment may affect your tax liability.

Coverdell Education Savings Account

Saving for college can be simple with the right investment program. A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education in elementary, secondary, and post-secondary educational institutions.

Coverdell ESA Highlights:

• Contribute up to $2,000 per year until the beneficiary’s 18th birthday. (If you meet the eligibility requirements. Eligibility varies depending on the income level of the contributor).
• Beneficiary may have more than one account in his or her name.
• Contributions to a Coverdell ESA are not tax deductible, but amounts deposited in the account grow tax free until distributed.
• Withdrawals may be used for K–12 expenses as well as college.
• Account earnings grow tax-deferred. Distributions are typically tax-free when the money is used before the beneficiary reaches the age of 30 and is used for qualified education expenses, such as tuition, fees, books, and room and board.

Download Coverdell ESA Forms or call 1-800-498-7120 to request a kit.

SEP IRA

An Easy, Low-Cost Retirement Plan

A SEP is a Simplified Employee Pension Plan in which employers make contributions to traditional IRAs set up for employees, including self-employed individuals (subject to certain limits). A SEP is funded solely by employer contributions. Each employee is always 100% vested in or, has ownership of all money in his or her SEP IRA.

SEP Highlights:

• Can be setup by a business of any size, even a self-employed individual
• Is easy to set up and operate
• Has low administrative costs
• Also, have flexible annual contribution obligations–a good plan if cash flow is an issue

Download SEP IRA Forms or call 1-800-498-7120 to request a kit.

Simple IRA

A SIMPLE IRA plan is a Savings Incentive Match Plan for a small business with 100 or fewer employees. Employees and employers can contribute to Individual Retirement Accounts set up for employees; subject to certain limitations. Each employee is always 100% vested in or has ownership of all money in his or her Simple IRA.

Simple IRA Advantages:

• Easy to set up and run.
• Administrative costs are low.
• Employees contribute on a tax-deferred basis, through convenient payroll deductions.
• Employers can choose to either match employee contributions or contribute a fixed percentage of all eligible employees’ pay.

Download Simple IRA Forms or call 1-800-498-7120 to request a kit.