Traditional IRAs are tax-deferred, which simply means that you generally won't pay taxes on the money in your IRA until you start withdrawing it. At that time, the money you take out of your IRA will be taxed just like regular income. On the front end, the money you deposit today into your traditional IRA may be deductible from your taxable income.
The money you contribute to a Roth today has already been taxed, so when you retire and start withdrawing, the money – and any potential growth in the account – may be tax free. And Roth IRAs offer a lot of flexibility even before you retire.
(SEP) Simplified Employee Pension
Simplified Employee Pension (SEP) IRAs have a reputation for being relatively straightforward and inexpensive plans. Because any type or size of business can have a SEP IRA
Owner-only 401(k) Plans
Any business with no employees other than owners and their spouse can set up this plan (including self-employed individuals, corporations and partnerships).
Businesses with Employees
Any type of business can set up a 401(k) plan, which is designed to let your employees defer part of their salary for retirement savings – and let you help by making optional tax-deductible matching contributions.
A SIMPLE IRA allows your employees to contribute to the plan through salary deferrals. You're also responsible for making contributions to the plan.
403(b) plans are retirement savings plans that are similar to 401(k) plans and have many of the same benefits. The main difference is that 403(b) plans can only be offered by organizations exempt from federal income tax.