TYPES OF ACCOUNTS

Understanding Coverdell Education Savings Accounts Tax-advantaged savings for education and qualifed education expenses. How CESA Works CESA, formerly known as an Education IRA, is a federally-sponsored, tax-advantaged trust or custodial account that allows families to increase their investment earnings through tax-deferral as long as the funds are later used for educational purposes. Parents, grandparents, other …

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Understanding Rollovers Moving your money from an employer-sponsored retirement plan (401(k), 403(b) or similar) to another plan is called a rollover. Potential Advantages Rolling over your employer sponsored retirement funds after you leave, or selecting a new trustee for your existing IRA, may offer advantages, such as: Full control and the liberty to make decisions …

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UNDERSTANDING SIMPLE IRA SIMPLE stands for Savings Investment Match Plan for Employees where self-employed individuals and small businesses can establish tax-advantaged retirement plans. Eligibility Criteria To participate in the plan, employees must have earned at least $5,000 in compensation in any two previous calendar years and be expected to earn at least $5,000 in the …

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UNDERSTANDING SEP A Simplified Employee Pension (SEP) is a retirement account that offers tax benefits for business owners and self-employed individuals. A SEP is much like a traditional IRA in that the contributions are tax-deductible, and investments grow tax-deferred. Tax deferred means that tax is collected when a distribution, which is considered income, is withdrawn …

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Understanding Roth IRAs In a Roth IRA (Individual Retirement Account), you can contribute only after-tax dollars. This may be a good option for those who expect to be in a high tax bracket in the future. Advantages of Roth IRA contributions There are no age limits to make contributions. Your contributions will grow tax deferred. …

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UNDERSTANDING a TRADITIONAL IRA Traditional IRAs are retirement accounts that allow contributions with pre- or after-tax dollars, with no income or age restrictions. After-tax contributions are tax deductible in the current tax year. Advantages of Traditional IRA Contributions During your working years, you may contribute every year, but you aren’t required to do so.  You …

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Understanding a Regular Investment Account A regular account (non-retirement) serves individual investors and families, family trusts, schools, mosques, foundations, endowments, businesses and other organizations. There are many types of investment accounts and a variety of investment strategies available depending upon your overall goals. Opening a regular investment account with us is simple and one of …

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