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Traditional IRA

A traditional IRA may be fully deductible depending on your income level and plan participation. The dividends earned would be tax deferred.

  • Independence from employer participation
  • Freedom to access or move assets
  • Tax credit for the contribution (if eligible)
  • Flexibility in choosing investment options and contribution amounts
  • Ability to leave assets to your beneficiaries
  • Tax deduction for contribution (if eligible)

Roth IRA

Roth IRA contributions are non-deductible, but in most cases your earnings are tax free.

  • Independence from employer participation
  • Flexibility in choosing a financial organization, investment options, and contribution amounts
  • Accessibility of assets
  • Ability to leave your assets to the beneficiaries of your choice
  • No required minimum distributions
  • Possible tax credit for contributions
  • Tax-deferred earnings
  • Tax-free distributions if qualified free

Coverdell Education

Coverdell Education IRA was designed to help families save for educational expenses - elementary, secondary, post-secondary.

  • Tuition and fees
  • Books
  • Supplies and equipment
  • Room and board
  • Special needs services

The Tax Relief Act of 2001 further increased the limits of contribution for all three types of IRAs. You can go to the IRS website to view these limits.