IRA Options
IRA Options: Understanding How To Plan For Retirement There are many options for helping with retirement planning and savings and few are as well known yet under-utilized as an IRA account. Most people believe there are only two main types of IRA accounts: Roth and regular, however, this isn’t correct. The SEP-IRA for business owners or self-employed individuals throws a very interesting loop into this argument for some individuals. There are certain pros and cons to each one, and understanding these better will help you decide which option is best for you. Traditional IRA In the traditional IRA, all funds are tax-free when put into the account , but then all withdrawals at retirement are taxable income. This still gives a few advantages – one being that it’s easier for low incomes to fund a traditional IRA since the taxes are deferred and for young savers, this is still worth a look because the power of getting more savings in quickly for a long period of time means compounding co...