IRA Types

In addition to customary Traditional Individual Retirement Account (IRA) administration, Trust Company of America provides full services for:

• Beneficiary IRAs
• Rollover IRAs
• Roth IRAs
• SEP IRAs
• SIMPLE IRAs

Traditional IRA

A Traditional IRA is a tax-deferred personal retirement account. Depending on an individual’s income level, tax-filing status, and coverage by an employer-sponsored retirement plan, contributions may be tax-deductible.

Beneficiary IRA

A beneficiary IRA is one of the options an individual has if they have inherited an IRA. Trust Company recommends that beneficiaries discuss all of their options with a tax advisor before establishing a beneficiary IRA, as there are many regulations governing such an account.

Rollover IRA

A rollover refers to the tax-free transfer of money from a profit-sharing, 401(k) plan, or traditional IRA into a new IRA account. As with all transfers of funds between retirement accounts, a rollover must be an allowable transaction within the guidelines of the original plan.

Roth IRA

A Roth IRA is a tax-deferred retirement account. Contributions are made with after-tax income and are not tax deductible, but may be restricted depending on an individual’s income level and tax-filing status. Qualified distributions from a Roth IRA are tax-free.

SEP IRA

A simplified employee pension (SEP) IRA is a tax-deferred retirement plan provided by sole proprietors or small businesses. Contributions are made by the employer and are subject to the same rules as a traditional IRA.

SIMPLE IRA

A Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA is a tax-deferred retirement plan that serves as an alternative to SEP IRAs. Under a SIMPLE IRA, a qualified employee has the choice of contributing to the plan, but the employer must fund the plan with either matching or nonelective contributions.

For additional information on IRA options, please visit www.IRS.gov.