retirement planning

What is the difference between a Roth IRA and a traditional IRA? That question about retirement planning is very common. I’ve written up short answers, detailed answers, courseware, seminars, flyers, tear sheets, white papers, and who knows what else about what a Roth IRA account is versus a traditional IRA account. Lately, the questions, while similar have gotten more varied: What is the difference between a SEP-IRA and a SIMPLE IRA? What is the difference between a Rollover IRA and Traditional IRA? What is the difference between a regular IRA and special IRA? That last one says to me that somewhere out there, there is a popular financial planning book, personal finance speaker, or television show using terminology that is either inaccurate, or poorly understood. Either way, here is a crash course in all the types of IRAs, what they are, how they work, and who they are for. Regular IRA Accounts – Individual IRAs – Personal IRA Accounts – Normal IRA Accounts Let’s start at the beginning. All IRA accounts are, by definition, personal IRA accounts, or individual IRA accounts. There is no such thing as a joint IRA. There is no such thing as an IRA account with …

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