What is an IRA? A SEP? Rollover? Roth?

IRAs, SEPs, Roths are terms to describe how an individual retirement account is taxed. 

Pre-tax.  After-tax.  Deferred tax.  All terms to describe when and how the money in the account is taxed.

An IRA is an individual retirement account.  It has tax features that help you save for retirement income.  You may contribute up to certain amount annually.

A traditional IRA provides tax-deferred growth and is not taxed each year.  The tax benefit is a deduction for the money you contribute or pre-tax dollars.  When you take funds out of the account, any funds that have not been taxed are treated as income in the year you take the distribution.

A Roth IRA provides tax-free growth.  You contribute after-tax dollars to the account.  When you take distributions, you receive all of the money tax-free (if you satisfy the IRS requirements). 

A traditional IRA is a retirement savings account you can contribute to up to a certain amount annually and only pay taxes on the money when you withdraw it. SEP and Simple IRAs are types of IRAs that your employer contributes to with higher limits.

SEPS are designed for small businesses or self-employed businesses and have different contribution

Rollovers are IRAs that receive funds from other retirement accounts.

 What is right for you?

Schedule a call or appointment.

Pat Frederiksen

303-919-1020

PatF@RoyalFundManagement.com

www.SmarterWomenColorado.com

Investment Adviser Representative

Independent Insurance Agent

Medicare Specialist

Investment Adviser Representative of and investment advisory services offered through Royal Fund Management, LLC, a SEC Registered Investment Adviser.

What is an IRA? A SEP? Rollover? Roth?
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