Types of IRAs
Traditional IRAs offer tax-deferred earnings and possible tax-deductible contributions. If you are currently working and will not reach age 70 1/2 this year, a Traditional IRA could be for you. Funds are pre-tax dollars and earnings are not taxed until they are withdrawn.
Roth IRAs provide additional incentives for retirement savings and additional options as to how the money can be used. Roth IRAs are funded with after-tax dollars, and while these contributions are not tax-deductible, the funds, including earnings, can be withdrawn tax-free (based on certain qualifications and provisions).
Different Types of IRA plans
Certificate (CD) IRAs
Simplified Employee Pension (SEP) IRAs
A SEP IRA is a special retirement plan established by Congress, primarily for small business owners and those that are self-employed. The contribution limits and regulations are different for SEP plans than for other IRA types. While Mainstreet does not administer SEP programs, we do accept contributions.
Coverdell Education Savings Accounts
A Coverdell Education Savings Account is designed to encourage savings to cover future education expenses (elementary, secondary, or college). Coverdell ESAs allow money to grow tax deferred and proceeds to be withdrawn tax-free for qualified education expenses at a qualified institution.