IRA, SEP IRA, or Keogh Plan

•  Individual Retirement Account (IRA): An Individual Retirement Account (IRA) is typically a bank, brokerage, or mutual fund account that a person has designated as a tax-deferred retirement account. All IRAs are “self-directed” because investors choose where to invest their retirement funds. While investors may place these funds in bank accounts, they may also buy stocks and other securities.

•  Simplified Employee Pension Individual Retirement Account (SEP IRA): Some small employers offer employees the opportunity to participate in a tax-deferred Simplified Employee Pension (SEP) plan. Under a Simplified Employee Pension plan, the employer and employee make contributions to individual retirement accounts (called a SEP IRA) set up by or for each eligible employee. Employees own and control their accounts. For filing purposes, SEP IRAs are treated like IRAs.

•  Keogh Plan: A Keogh plan (also called a “HR-10 plan”) is a tax-deferred pension account for self-employed persons and employees of unincorporated businesses. Like IRAs, an employee may put almost any available investment into a Keogh, and the investment earnings grow on a tax-deferred basis. 


This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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