Notice to Clients Regarding the Closing of Silvergate Bank, Silicon Valley Bank, and Signature Bank.
Individual Retirement and Business Accounts
Equity Institutional offers a full range of tax-advantaged accounts, including IRAs and qualified account types to meet the investment needs of your clients.
Allows individuals to make contributions with pre-tax money and may provide a tax deduction, while the investment earnings are tax-deferred until withdrawn from the account.
- Contributions may be fully or partially tax deductible depending on your circumstances
- Taxes on investment earnings are deferred
Individuals are eligible to begin making withdrawals at age 59 ½, but required minimum withdrawals from a Traditional IRA must begin at age 70½.
View Contribution Limits
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.
- 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 Contributions to a SEP are tax deductible and compound tax-deferred until withdrawn, pending that the distribution is taken after the account holder reaches 59 ½ years of age.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.
- 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 With a SIMPLE plan, contributions are tax deductible and compound tax-deferred until withdrawn, pending that the distribution is taken after the account holder reaches 59 ½ years of age.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.
- 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
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).
- 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
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.
- 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.
- 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
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