What are the different types of IRA?

    1. Traditional IRA. With this account, you pay taxes on your money only when you make withdrawals. In order to contribute to a Traditional IRA, individuals should be under the age of 70 ½ and must meet certain income requirements to be eligible for the tax benefits.  For more information, please see the IRS website.  The annual contribution limit is $5,500, until you turn 50 and then it increases to $6,500. You may be subject to a 10% penalty if you make withdrawals before you turn 59 ½. There are a few exceptions, see here for details.
    2. Roth IRA. Deposits into this account are made after taxes have been taken out. The contribution limits into a Roth IRA are based on income. For more information, please see the IRS website. For most, the annual contribution limit for 2017 is $5,500, until you turn 50 and then it increases to $6,500.
    3. SEP IRA or Simplified Employee Pension. This is a type of Traditional IRA for self-employed individuals or small business owners. It offers tax benefits to employees and employers. Contributions to SEP IRAs are made by employers. The contribution limits to a SEP IRA are usually higher than a Traditional IRA. For more information on contribution limits, please see the IRS website.
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