What types of accounts are Tax-Deferred?

Accounts for Individual(s)

• Traditional IRA
  • Individual Retirement Account(s) (IRAs) allow individuals to save and invest for retirement on a tax-deferred – and possibly tax-deductible- basis.
• Rollover IRA
  • Rollover IRAs allow individuals with employer-sponsored retirement plans from former employers to consolidate them into a single, tax-advantaged account.  Amounts rolled over may continue to grow tax deferred.
• Stretch IRA
  • This distribution strategy can potentially stretch the tax-deferred benefits of an IRA for future generations.
• Guardian IRA
  • Guardian IRAs are held in the name of a parent or legal guardian on behalf of a minor or for an individual who is unable to manage finances due to physical or mental disability.
• Spousal IRA
  • Spousal IRAs allow a non-working spouse to contribute to a retirement account.

Accounts for Employer(s)

• SEP IRA 
  • Simplified Employee Pension (SEP) IRAs allow self-employed and small business owners and their employees to save and invest for retirement with minimal administrative burden.
• SIMPLE IRA
  • Savings Incentive Match Plan for Employees (SIMPLE) IRAs allow small businesses to offer a substantial retirement benefit that enables eligible employees to contribute pre-tax compensation to the plan.
• Individual 401(k)
  • Individual 401(s) plans allow self-employed individuals or small business owners with no employees other than a spouse to potentially set aside higher contribution amounts than with other small business plans, with less administrative burden than a 401(k).
• 401(k) Plan
  • 401(k) plans allow businesses to provide eligible employees with a robust retirement benefit while enjoying a high degree of plan customization.
• Profit-Sharing Plan
  • Profit-Sharing plans allow business owners to fund a retirement program for eligible employees with a high degree of flexibility – deciding each year whether and how much to contribute.
• Money Purchase Pension Plan
  • Money Purchase Pension Plans allow business owners to provide employees with a fixed, pre-established benefit for employees, expressed as a percentage of compensation.
• 403(b)(7) Custodial Account(s)
  • 403(b)(7) custodial accounts provide a tax-deferred investment option to employees of certain public education and tax-exempt organizations that sponsor retirement plans.

Work with us to better understand how these types of accounts fit into your financial plan.