Retirement Plans

What is an IRA?


An individual retirement account (IRA) allows you to save money for retirement with tax-advantages. It allows you to invest for retirement with tax-free growth (grow your money now, don’t ever pay taxes) or on a tax-deferred basis (grow your money now, pay taxes later).

Traditional IRA

Contributions you make to your account may be fully or partially tax-deductible (lowering your tax bill), depending on your filing status and income. Generally, amounts in your traditional IRA (including earnings and gains) are not taxed until you take a distribution (withdrawal) from your IRA after the age of 59 1/2.

Roth IRA

Roth IRA contributions you make cannot be deducted from your taxable income. If you satisfy the requirements (age 59 1/2, 5-Year Holding Period, etc.), qualified distributions are tax-free when you withdraw them. 

You can make contributions to your Roth IRA even after you reach age 70 ½ and or leave amounts in your Roth IRA as long as you live.


A SEP plan allows employers to make retirement savings contributions for their employees. A business of any size, even a self-employed person, can establish a SEP.

A SEP does not have the start-up and operating costs of a conventional retirement plan (like a 401k) and allows for the employer to make a contribution of up to 25% of each employee’s pay.