Should I open a Roth IRA? Traditional IRA ? SEP IRA? These are questions many taxpayers ask.

Generally, a Traditional IRA may be beneficial if you're eligible to make deductible contributions and expect your tax rate during retirement to be lower than it is today. On the other hand, a Roth IRA may be a wise choice if you expect your tax rate to be the same or higher during retirement. A SEP IRA is a retirement plan designed to benefit self-employed individuals and small business owners.

The answer depends on each unique situation, and a Financial Advisor can help you choose an IRA that's right for you.

Traditional IRA

100% of earned income up to $5,500 ($6,500 if eligible2 for a catch-up contribution) reduced by Roth IRA contributions

 

Roth IRA

100% of earned income up to $5,500 ($6,500 if eligible2 for a catch-up contribution) reduced by Traditional IRA contributions

 

SEP IRA

Contribution to the account may not exceed the lesser of 25% of the employee's compensation or $52,000

Traditional IRA

100% of earned income up to $5,500 ($6,500 if eligible2 for a catch-up contribution) reduced by Roth IRA contributions

 

Roth IRA

100% of earned income up to $5,500 ($6,500 if eligible2 for a catch-up contribution) reduced by Traditional IRA contributions

 

SEP IRA

Contribution to the account may not exceed the lesser of 25% of the employee's compensation or $54,000