Traditional, SEP, and Roth IRA: Benefits & Drawbacks of Each
Roth, SEP, or traditional? When it comes to IRAs (individual retirement accounts), do you have a tough time keeping the differences straight? Don’t worry: You’re not the only one.
The three types of IRAs serve different purposes, and each come with their own set of benefits and potential drawbacks. While all offer the ability of helping you save for retirement, there are fundamental characteristics of each that impact your retirement planning. What’s more, your eligibility to use certain IRAs will be based on your income level and access to employer-sponsored retirement plans.