(b) Roth IRAs
All transactions & earnings within Roth IRAs have no tax impact but you have to pay taxes when depositing money into this account. Unlike traditional IRAs, your income may prevent you from contributing.
(c) SEP IRA
Also known as Simplified Employee Pension IRAs. It is a traditional IRAs for small business owner & self-employed individuals to make retirement plan contributions in employee’s name rather to a pension fund in company’s name.
(d) Simple IRA
Also known as Savings Incentive Match Plan for Employees IRA. It is a plan quite similar to 401 (k) plan but with lower contribution limits & less costly administration. It allows employer matching contributions to the plan whenever an employee make a contribution.
After you turned 70.5 years, you will have to make required minimum distributions (RMDs) which in turn will depend on your life expectancy & account value. You also have to start withdrawing money before April 1 of the year following the year you turned 70.5 years.
(8) Mutual Funds
It is one of the most suitable & best retirement investment options or plans to purchase securities. Mutual fund is a type of professionally managed investment fund. It pools investor’s money to purchase stocks, bonds, & other instruments which in turn are divided into stocks.
It provides the benefits of diversification, liquidity, simplicity, affordability & professionally managed portfolio after doing research & analysis of stocks.
Every investor will have to pay the funds per share Net Asset Value (NAV) along with any shareholder fees. Most of the mutual funds calculate their NAV value after the close of major exchanges.
Image Source: Shutterstock