This option is a retirement plan funded by employer contributions. The employer makes deductible contributions directly into each eligible employee’s Traditional IRA.

The Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. There are two requirements for eligibility to contribute to a Roth IRA: the investor must have earned income; and the investor’s modified adjusted gross income cannot exceed certain limits.

Coverdell Education Savings Accounts (ESA) is a non-deductible account that features tax-free withdrawals for a child’s education expense. With the cost of higher education growing every year, it’s a great way to help offset the cost of your kid’s college expenses.

The Traditional IRA is an account that allows the investor to defer taxes on earnings until funds are withdrawn. Certain contributions are tax deductible in the year they are made. Contribution limits change on a annual basis.