Individual Retirement Accounts (IRA)
Individual Retirement Accounts (IRAs) are special savings plans to help customers accumulate funds for retirement years.
Traditional IRA - allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year for which you make them.
Roth IRA - allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA.
Coverdell Education Savings Account - is a nondeductible account that features tax-free withdrawals for a very specific purpose - a child's education expenses.