IRA Accounts
IRA-SEP IRA and other Tax-Qualified Plans     

     Individual Retirement Accounts known as IRA and ROTH IRA, or Simplified Employees Pension known as SEP IRA and all other tax
deductible plans including 401K’s, are not investments. They are qualified plans, mostly used for retirement or future income
that will allow you to save money in any saving account or investment vehicle of your choice on a Pre-Tax and/or Tax-Deferred basis subject to the government rules and limitations. Qualified Plans are defined as plans regulated by the government as to how much you can deduct before
paying any taxes.

     As long as you earn an income, you should have a qualified plan. But, you have to know them and know how to apply them correctly to your situation. Otherwise, you won’t be taking full advantage of the tax law. As an example, if your earned income comes from the business you own, the type of qualified plan suitable for you can be different from someone who does not own his business. The rule of thumb is: To use the tax law to
work for you.

     But, if you're confused about which type of individual retirement
account to choose, here's the quick and easy (and probably smartest) strategy that is suitable for most everyone.

Put your money in a Roth IRA.

Here is why:

     Compared with an employer-sponsored retirement account -- such as
a 401(k) or 403(b) -- or a traditional IRA, the Roth, without any question,
is by far more flexible and likely will lead to more money in retirement.

A Big Bullet Point;

      You can have a Roth IRA with full contribution AND as many as any other types of tax qualified plans, such as a 401K, SEP, Defined benefit & Contribution plans, and so on…

     With a ROTH, contributions do not reduce taxable income, so there's
no deduction. However, the ROTH is a tax-free account; no taxes are paid on the interest, dividends, or gains – ever

Getting your hands on the money

     Besides fostering tax-free growth, the ROTH IRA has flexible
withdrawal rules. Contributions to a ROTH -- that is, the money you save into the account -- can be withdrawn at any time, penalty- and tax-free.
For example, let's say you have contributed $20,000 to a Roth, and it
grew to $25,000. You can withdraw your twenty-grand contribution at
any time, no questions asked. However, if you try to take out that $5,000 gain before you're 59 1/2 and the account has not been set up for five years, then you may be subject to penalties (Except in special cases).

The Bottom Line

     So, if you’re indecisive which way to go with an affordable saving plan, ROTH IRA
could be the way to go. Simply stated, The ROTH individual retirement account is the hottest saving plan ever.

     Here is the key attraction: You open the account with after tax money, but from
then on everything is Tax Free, even when you withdraw the money, plus no minimum required distribution. It is all yours. No taxes. No government intervention. Plus, Contributions to a Roth -- that is, the money you save
into the account -- can be withdrawn at any time even before 59 1/2, penalty- and tax-free.