IRA Basics

IRA – U.S. “Individual Retirement Account” opened on your own vs a 401K opened by your employer.
Traditional IRA – Deductible from your income on your tax return under certain conditions if your age is less than 70 1/2.
Roth IRA – Not deductible from your income on your tax return however investment growth such as interest, dividends and capital gains grow tax free. You can start withdrawing after age 59 1/2 with no penalty and before that with a penalty on the growth portion only. Special rules apply for Roth IRA conversions.
SEP IRA – Simplified Employee Pension for self employed small business owners.
SIMPLE IRA – “Savings Insentive Match Plan for Employees”