Account Types

Roth IRA

Allows eligible individuals to make contributions with after-tax dollars (not eligible for tax deduction).  This account is designed to allow investment earnings to grow tax-free and provides the opportunity for tax-free withdrawals in retirement. The earnings and distributions are tax-free after the individual reaches 59 ½.

Advantages:

• Qualified withdrawals are tax-free
• Investments can compound tax-free
• No required withdrawals at any age

Individuals who are U.S citizens, regardless of age, can open a Roth IRA, assuming their individual Modified Adjusted Gross Income (MAGI) is within allowable limits.

SEP – Simplified Employee Pension

Simplified Employee Pension (SEP), is designed for self-employed individuals or small businesses with less than 25 employees. The SEP allows for pre-tax contributions toward retirement without getting involved in a more complex qualified plan such as a 401(k).  Contributions to a SEP are tax deductible and compound tax-deferred until withdrawn, pending that the distribution is taken after the account holder reaches 59 ½ years of age. Additional information related to SEP accounts can be found here.

Advantages:

• Less complex and costly than a 401(k)
• Allows individuals to contribute larger amounts
• May qualify for larger tax deductions

SIMPLE – Savings Incentive Match Plan for Employees

Savings Incentive Match Plan for Employees (SIMPLE) is a plan for small businesses, typically with 100 or fewer employees, that have no other retirement plans.  With a SIMPLE plan, contributions are tax deductible and compound tax-deferred until withdrawn, pending that the distribution is taken after the account holder reaches 59 ½ years of age. Additional information related to SIMPLE accounts can be found here.

Advantages:

• Less complex and costly than a 401(k)
• Contribution limits are higher than individual retirement accounts and grow tax-deferred, without being subject to capital gains or income tax
• Employees are always 100% vested in (or, has ownership of) all SIMPLE IRA money

Solo 401(k)

The Solo 401(k) is designated for a business in which only the owner (and their spouse) is an employee, and offers the same benefits of the 401(k).

Advantages:

• A retirement savings plan specifically designed for the individual business owner
• Higher contribution limits for tax-advantaged retirement investing
• Opportunity to maximize contributions through employee and employer contributions

Custodial Services

Non-Qualified Personal Custodial Services: Equity Institutional offers custodial services for non-qualified custodial accounts, providing individual investors and corporations with a convenient way to consolidate, monitor, and track all investments within the portfolio.

Qualified Custodial Services: Equity Institutional also provides custodial-only services for qualified retirement accounts. This service allows for an existing qualified retirement plan to be diversified without the obligation to move the entire account.

Health Savings Accounts (HSA)

A Health Savings Account (HSA) allows individuals to save for current and future medical expenses in a tax-advantaged environment, while potentially reducing their health insurance premiums.

Advantages:

• Potentially lower health care premiums
• Triple Tax Advantages – possible tax deductions, funds grow tax-deferred and qualified expenses are tax-free
• Not a “Use it or Lose it” Plan

Coverdell Education Savings Accounts (CESA)

A Coverdell Education Savings Account (CESA) allows individuals to save for educational expenses in a tax-advantaged account. Earnings from investments in the account grow tax-deferred and distributions are tax-free when used for qualified expenses.

Advantages:

• Save for Higher Education
• Save for More than just College – Help pay college expenses, in addition to elementary and secondary tuition, as well as books and supplies
• Anyone can contribute to a CESA