IRA Center This is the internet’s source for information on Retirement Accounts
for beginners and professionals. The following information covers traditional IRAs, roth IRAs, 401(k)s, 401(k)
rollovers, SIMPLE IRAs, SEP IRAs, 403(b)s, SARSEPs, Keoghs, Pension Plans. Do you participate in a retirement plan
through your employer? You may be illegible to start a Traditional or Roth IRA as well.
Learn more about the following retirement accounts
A 401(k) plan is a tax-deferred investment and savings plan that
acts as a personal pension fund for employees. It allows employees of corporations and private companies to save
and invest for their own retirement.
A 403(b) is a tax-deferred investment and savings program for employees
of certain tax-exempt employers. It allows employees of hospitals, educational institutions, and other non-profit
organizations to save and invest for their own retirement.
A traditional IRA, or Individual Retirement Account, is a tax-deferred
investment and savings account that acts as a personal retirement fund for people with employment income.
Roth IRA offers higher income limits and more relaxed eligibility rules
than available with the traditional account. Individuals earning up to $95,000 and couples earning up to $150,000
can fully contribute to a Roth -- even if they're already covered by an employer-sponsored retirement plan.
A SEP-IRA, or Simplified Employee Pension IRA, is a tax-deferred retirement
plan provided by sole proprietors or small businesses, most of which do not have any other retirement plan. Contributions
are made by the employer, up to 15% of each employee's total compensation, with a maximum contribution of $25,500.
A SARSEP-IRA, or Salary Reduction SEP-IRA, is a tax-deferred retirement
plan provided by sole proprietors or small businesses with fewer than 25 employees. Contributions are made by both
the employee and the employer.
The SIMPLE-IRA, or Savings Incentive Match Plan for Employees-IRA,
replaced the SARSEP-IRA for new plans established on or after January 1, 1997. The SIMPLE-IRA is a tax-deferred
retirement plan provided by sole proprietors or small businesses (fewer than 100 employees) who do not maintain
or contribute to any other retirement plan.
A Keogh plan is a tax-deferred retirement plan designed to help self-employed
workers or individuals who earn self-employed income establish a retirement savings program.
A pension plan is a retirement plan, offered by some employers, that
pays a set amount each year during retirement. Also called a defined-benefit plan, company pensions guarantee a
specific amount of benefits to employees, calculated using a formula that typically includes your final salary,
years of service, and a fixed percentage rate.
