Retirement & Education Savings

Traditional IRA

Roth IRA

Simplified Employee Pension (SEP)

Best if you...

• Want to reduce taxable income now
• Don’t plan on making withdrawals until retirement

• Want to have more flexibility for withdrawals and reduce taxable income
• Plan to work past age 70

Are self-employed or a small business owner

Tax Advantages

• You may be able to reduce your current income taxes now
• You don’t pay taxes until you take money out, typically when you are in a lower tax bracket

All earnings grow tax-free, and you don’t pay taxes when you take money out

You don’t pay taxes until you take money out of the account

Contribution Limits

See IRS Website

See IRS Website

See IRS Website

Tax Advantages

• You don’t pay taxes until you take money out of the account
• Tax-free distributions are allowed if used for qualified education expenses

Contribution Limits

• Limit of $2,000 per year, per student total from all contributors
• Beneficiary must be under 18 when contributions are made
• Income limits may apply

Withdrawals and Distributions

• Tax-free distributions are allowed if used for qualified education expenses
• Income tax and a 10% early withdrawal penalty may apply if used for non-qualified expenses
• May withdraw at any time
• Funds must be distributed or transferred to another family member by the time the beneficiary reaches age 30