Account Types
An employer-sponsored retirement savings plan in which both the employee and employer may make pre-tax contributions.
A cash balance pension plan is a defined-benefit plan with the option of a lifetime annuity. The employer credits a participant's account with a percentage of their yearly compensation plus interest charges for the plan.
A taxable account for businesses to invest their excess cash reserves.
An account controlled by an adult on behalf of a minor until they reach 18 or 21 years of age. The adult (custodian) must approve all transactions within the account.
A profit-sharing plan is a retirement plan that gives employees a share in the profits of a company. The employee receives a percentage of a company's profits based on its quarterly or annual earnings.
An account in which a beneficiary is named to receive the assets of the benefactor at the time of their death without going through probate. More than one beneficiary may be named with different percentages of the assets being specified by the benefactor.
Fixed annuities are types of insurance contracts that guarantee the buyer a specified interest rate on their contributions. The earnings within fixed annuities are tax deferred until the owner begins withdrawing and receiving income from the annuity.
A taxable account at a brokerage, bank or company owned by one, individual person.
A tax-advantaged retirement savings plan for individual small business owners and their spouses. Because the employer and the employee are the same individual, retirement contribution limits are much higher than traditional plans. Additionally, contributions made as the employer are tax-deductible.
A bank or brokerage account shared among two or more people, frequently used by couples, relatives, or business partners. Within joint accounts, every owner is able to withdraw cash, write checks, and make online payments.
An employer-sponsored Individual Retirement Account (IRA) that is able to be transferred into a traditional IRA. Rollover IRAs allow accounts to maintain their tax-deferred status.
In a Roth Individual Retirement Account (IRA), contributions to the account are taxed up front. Upon withdrawal, the owner incurrs no taxes.
A Simplified Employee Pension (SEP) is a type of Individual Retirement Account that can be established by an employer or self-employed person. Within a SEP IRA, the employer is given tax deductions for contributions to their SEP IRAs as well as each eligible employee's plans.
A Savings Incentive Match Plan for Employees (SIMPLE) is a tax-deferred retirement savings account established by employers, including self-employed individuals. Employers with 100 employees or less who have received at least $5,000 in compensation from the employer the prior year are able to create SIMPLE accounts for their employees.
Within a Traditional Individual Retirement Account (IRA), workers are able to direct pre-tax income towards investments that grow tax-deferred. The account is not taxed until the individual makes withdrawals from the account.
A variable annuity is an insurance contract in which the value can vary based on performance of the underlying portfolio. Variable annuities often offer greater income but at a higher risk of the account's value falling.

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