For the current year, you can deposit earned income up to $5,500 through ($6,500 if age 50 or older) Tax Day the following year.
A term used when you are “rolling over” your current retirement savings from a previous job (401k, 403B, 457, etc.) to one of the IRA’s above. A Transfer is when you're moving your IRA from one financial institution to another. We can help you with the paperwork!
Funded with pre-tax earned income (meaning you’ve earned this income while working and taxes weren't paid on this money or you plan to write the deposit off your taxes when you file). This money grows without having to show it on your taxes every year. You can then take the money out of this account, without penalty, at age 59 & 1/2. This is when you'll pay the taxes on the money taken out of the account (or when you file your taxes for that year). There are some limitations to this type of account, the IRS website has more information.
Funded with after-tax earned income (meaning you’ve earned this income while working and already paid taxes on the money deposited). This money grows without having to file it on your taxes - or having to pay taxes on its growth! You can then take the money out of this account, without penalty, at age 59 & 1/2 - and it's tax-free. There are some limitations to this type of account, the IRS website has more information.
An account to save for education expenses (also known as a Coverdell IRA, Coverdell ESA, or Education Savings Account). The money deposited (after-tax) and earned can be withdrawn tax-free if spent on education. The contribution limit for an Education IRA for the current year is $2,000. To read more, you can check out the IRS website.