IRAs & HSAs

A traditional IRA is a retirement savings account that offers tax advantages. In many cases, the money you contribute can reduce your taxable income, depending on how much you earn and your tax filing status. The funds in the account—including investment growth—are not taxed while they remain in the IRA. You pay taxes later, when you withdraw the money in retirement.

A Roth IRA is a tax-advantaged retirement savings account where contributions are made with after-tax dollars, meaning they are not tax deductible. However, qualified withdrawals, including earnings, can be taken tax free, provided certain requirements are met (such as age and holding period rules). A Roth generally follows the same basic rules as a traditional IRA, but it differs in key ways, particularly in how and when taxes apply.

A Simplified Employee Pension (SEP) is a retirement plan established by an employer. Under a SEP, the employer makes contributions directly into a traditional IRA set up for each eligible employee (including the employer, if self-employed). They can be a powerful retirement savings tool because they allow employers to contribute a substantial amount toward retirement—generally up to 25% of each eligible employee’s compensation (subject to annual IRS limits). One of the main advantages of a SEP is its simplicity. It has minimal start-up and administrative costs compared to many traditional retirement plans, making it especially attractive for small businesses and self-employed individuals.

A Health Savings Account (HSA) is a tax-advantaged personal savings account designed to help you pay for eligible medical expenses. If you qualify (generally by being enrolled in a high-deductible health plan), you can contribute money to the account on a tax-advantaged basis. Contributions may be tax deductible (or pre-tax through payroll), the money grows tax free, and withdrawals are tax free as long as they are used for qualified medical expenses - such as deductibles, copayments, coinsurance, prescriptions, and certain other healthcare costs.