| IRAs or Self Directed IRAs are great investments | | | | earned through investments will not be allowed to |
| for the future. Between employer based IRAs | | | | be withdrawn until you are 59 ½. |
| and personal IRAs, the rules and benefits of each | | | | The Education IRA is great for parents who want |
| can get confusing. Here we will explain five | | | | to save money for their children's education. It |
| different types of IRAs and the pros and cons to | | | | can be set up by a parent or guardian for a child |
| each. | | | | under the age of 18. The money will also be tax |
| A traditional IRA has the most restrictions of all | | | | free for its life but can only be used for |
| the IRAs. However, it is sometimes the only | | | | educational purposes. |
| option because of the income restriction placed on | | | | SEP IRAs are set up by employers for their |
| the Roth IRA. Even the traditional IRA has great | | | | employees retirement benefits. They have most |
| benefits with tax deductions, tax deferred | | | | of the same rules as a traditional IRA as far as |
| income, and investments. | | | | making withdraws. One benefit of this IRA is the |
| Money in a traditional IRA is tax deferred until it is | | | | amount you can contribute per year. You are |
| withdrawn. You can also receive a tax deduction | | | | allowed to have 15% of your income put into the |
| on any of the contributions made. It is still a great | | | | account which can be more than the standard |
| option for investing as your income will also be | | | | amount if you make enough. |
| tax deferred. You can withdraw money from | | | | The last account we will discuss is the SIMPLE |
| your account at the age of 59 ½ or earlier if | | | | IRA. This is also set up by the employer but is |
| you want to pay a 10% fee. At the age of 70 | | | | not as complex as the SEP IRA. This IRA is not |
| ½ you will be required to make withdraws. | | | | as expensive for the employer. Because of this, |
| Roth IRAs are the most desirable of all the IRAs. | | | | many small companies have set these up for |
| You must be making under $95,000 as a single or | | | | their employees' retirement benefits. |
| $150,000 as a couple to qualify for one. The | | | | With whatever IRA you have you can usually set |
| greatest benefit to this account is the tax free | | | | it up to be a Self Directed IRA. This means you |
| income. You will not receive a tax deduction, but | | | | can invest the money on your own. This is a |
| will not have to pay taxes when the money is | | | | great option for those that already know how to |
| withdrawn. You will be allowed to withdraw | | | | invest. If you are unsure or don't have the time |
| money at any point if it is the money you | | | | to make this investment then you can simply |
| originally contributed. This means your money | | | | choose not to have a Self Directed IRA. |