Traditional IRAs

While both Roth and Traditional IRAs are designed to help you save for retirement, they differ in how and when you get tax advantages.  Traditional IRAs are better for people who expect to be int he same or a lower tax bracket at the time of retirement.  Investors generally earn annual tax breaks on their contributions to traditional plans.

Roth IRAs

Roth IRAs are better suited for individuals who expect to be in a higher tax bracket at the time of their retirement.  Roth IRAs offer future tax-free withdrawals with no minimum distributions for sustained yearly income when certain requirements are met.  Contributions to Roth IRAs are tax-free but Investors do not receive any tax benefits for current year contributions.

Self-Employed Plans

A Simplified Employee Pension IRA (SEP IRA) allows employers to contribute to both the owner and their employee's retirement accounts.  SEP IRAs offer flexible contributions for business owners and solo entrepreneurs.  SEP IRAs add financial security for business owners and they are relatively inexpensive to set up.  Annual contributions are tax-deductible to the employer.