What don’t you know? Many Americans know about Roth and traditional IRAs, but there are other types of IRAs. Here’s a quick look: Traditional IRA Also referred to as a deductible IRA, is an individual savings plan for anyone who receives taxable compensation. IRA assets may be invested in any number of vehicles, and contributions may be tax-deductible. Earnings in a traditional IRA grow tax-deferred until withdrawal, but will be taxed when withdrawal begins – and withdrawals must begin by the time the IRA owner reaches age 70½. Roth IRA Offers you tax-free compounding, tax-free withdrawals if you are older than age 59½ and have owned your account for at least five years, and the potential to make contributions to your IRA after age 70½ without having to take RMDs. SIMPLE IRAs Qualified retirement plans for businesses with 100 or fewer employees. SEP Stands for Simplified Employee Pension. These traditional IRAs are set up by an employer for employees and funded by employer contributions only. Spousal IRA A rule that lets a working spouse make traditional or Roth IRA contributions on behalf of a non-working or retired spouse. Inherited IRA A Roth or traditional IRA inherited by a non-spousal beneficiary. Group IRA A traditional IRA offered by employers, unions, and other employee associations to their employees, administered through a retirement trust. Rollover IRA Assets distributed from a qualified retirement plan may be rolled over into a traditional IRA, which may be converted later to a Roth IRA. Education IRA (Coverdell ESA) Provides a vehicle to help middle-class investors save for a child’s education. Consult a qualified financial professional regarding your IRA options. There are many choices available, and it is vital that you understand how your choice could affect your financial situation. No one IRA is the “right” IRA for everyone, so do your homework before your proceed. This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

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Sgroi Financial is a full service, independent financial planning firm proudly serving the Western New York area since 1971. We offer services that will help you achieve your financial goals including retirement planning, investment management, estate planning, college planning and insurance. We help individuals, families, retirees, working adults, young adults and business owners.