A Traditional IRA may be tax deductible. You may contribute annually up to 100% of your earned income or $5,000. Persons 50 and older may contribute an additional $1,000 annually as a "catch-up" contribution. The funds are invested in Certificates of Deposit. Certain withdrawals from this IRA may have a penalty.

 

Roth IRA is not tax deductible.  You are allowed some tax free withdrawals for distribution reasons, after a five year holding period.  You may contribute annually up to 100% of your earned income or $4,000 (through 2006 and 2007, limits increase to $5,000 in 2008), depending on your modified adjusted gross income.  Persons 50 and older may contribute an additional $1,000 annually as a "catch-up" contribution.  The funds are invested in Certificates of Deposit. 

 

A Self-Direct IRA is a traditional IRA that allows qualified investments, other than time deposits.  (Such as Stocks and Bonds, etc.)

 

A Simplified Employee Pension (SEP) IRA is a plan set up with a regular IRA.  The employer is responsible for the amount of funds that are deposited on behalf of the employees.  The funds are invested in Certificates of Deposit.

 

A Simple IRA works similar to a 401K.  The employer maintains and establishes this plan.  The funds are invested in Certificates of Deposit.

 

An Educational IRA is not tax deductible. It allows tax free withdrawals for a child’s higher education expenses. A contribution on behalf of a child under the age of 18 is $2000 annually, depending on modified adjusted gross income. The funds are invested in Certificates of Deposit.