Click on a Retirement term to see the
A retirement investing tool with potential tax benefits.
Traditional IRA contribution earnings grow tax-deferred, meaning
you don't pay taxes on them until you withdraw them. Contributions
to a Traditional IRA may also be tax deductible. An IRA owner must
begin taking required minimum distributions (RMD) from their
accounts the year they turn 70½. Additionally, they must stop
making contributions at that time. Early withdrawal penalties may
An individual retirement plan that is similar to a Traditional IRA.
The main differences are that contributions are never deductible,
required minimum distributions (RMDs) are not required, and you may
continue to contribute as long as you are working (regardless of
your age). Qualified distributions are tax-free. Early withdrawal
penalties may apply.
SEP (Simplified Employee
A tax-deferred retirement plan available to sole proprietors and
small businesses. Contributions, up to 25% of each employee's total
compensation, are made by the employer (maximum annual contribution
dollar limits apply). These plans follow most of the same rules as
Traditional IRAs. Two of the biggest differences are the higher
contribution limits, and being able to contribute past age 70½ if
still working. Early withdrawal penalties may apply.
*These are basic definitions of IRA accounts and do not cover
all possible tax consequences or IRS rules and regulations. Please
consult IRS Publication 590 for a complete listing of all IRS rules
and regulations regarding IRA accounts. Please consult your tax
advisor about possible tax benefits and consequences for opening
and contributing to or withdrawing from an IRA.
For more information:
The information provided here is not intended to be a
comprehensive treatment of the subject matter. The answers are for
general information only and are not intended to provide specific
legal, financial or accounting advice or recommendations. Please
consult with qualified professionals to discuss your
*Not FDIC Insured *No Bank Guarantee
*Not a Bank Deposit
*Not Insured by any Federal Government Agency
*May Lose Value*
|Securities, advisory services, and insurance
products are offered through LPL Financial, a Registered Investment
Advisor, member FINRA / SIPC. Sandy Spring Bank and Sandy Spring Wealth
Management are not registered broker/dealers and not affiliated
with LPL Financial.
|This site is designed for U.S. Residents only.
The services offered within this site are available exclusively
through our U.S. Investment Representatives. LPL Financial's U.S.
Investment Representatives may only conduct business with residents
of the states for which they are properly registered. Please note
that not all of the investments and services mentioned are
available in every state.