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CONTRIBUTORY AND ROLLOVER IRAs
There
are two types of "Traditional IRAs" - Contributory IRAs and Rollover IRAs.
A
Contributory IRA is used to personally set aside funds for retirement.
For many taxpayers, annual amounts contributed to this type of IRA are deductible on an individual's tax return.
Tax deductibility depends on an individual's participation status in an
employer's retirement plan and adjusted gross income (AGI). Interest earnings
are tax deferred until withdrawn.
Rollover
IRAs are established to shelter from taxation money distributed from an
employer's qualified retirement plan. Interest earnings are tax deferred
until withdrawn.
ROTH
IRAs
Roth
IRAs are used to put aside funds for retirement. Although, contributions
are not tax deductible, all earnings have the potential to be distributed
tax-free if certain criteria is met. In addition, there are no mandatory
distributions required at age 70 1/2.
SEPS
A
Simplified Employee Pension (SEP) is a pension plan established by a business
whereby the contributions are deposited into Traditional IRAs and are
tax deductible by the employer. A sole proprietor, partnership, corporation,
or tax exempt organization may establish SEPs.
SIMPLE
IRAs
The
Savings Incentive Match Plan for employees (SIMPLE) IRA plan makes
available a simplified salary deferral retirement option to small employers with
less than 100 employees. Contributions are made to each participant's
SIMPLE IRA.
RETIREMENT
PLAN FEES
|
IRA
Annual Trustee Fee |
$15.00 |
|
Lump
Sum Distribution Fee |
$15.00 |
|
Outgoing
Transfer Fee |
$15.00 |
|
Process
of Legal Services (Levies) |
$65.00 |
|
Marital
Dissolution |
$50.00 |
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