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Running Head: IRA
In normal circumstances, an IRA is an Individual Retirement Account. This is a tool used
by individuals to earmark funds and earn when making retirement savings. In the United States,
there are various types of IRA which include SEP IRAs, Roth IRAs, traditional IRAs and,
SIMPLE IRAs (Fleisher & Lippe, 2014). In most case, this is generally referred to as individual
retirement arrangement which includes financial products such as mutual funds, stocks, and
bonds. The traditional IRA’s is usually tax deductible. Although the IRA’s is not tax deductible,
it is always subject to eligibility concerning distribution. The SEP ITAs considers individuals
such as small business owners, contractors and, freelancers. It allows employers to deduct the
contribution from business incomes to secure lower tax rates. Regardless, the employees are not
allowed to contribute to their accounts and the IRS taxes are withdrawn as incomes.
On the other hand, saving’s Incentive Match Plans are specifically for self-employed
individuals and start-up businesses. They allow employees ...
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