Individual Accounts

In addition to retirement plans, Summit provides individual retirement solutions.  We offer IRAs, Roth IRAs, SIMPLE IRAs, SEP IRAs and Non Qualified accounts.

 

Traditional IRA
A Traditional Individual Retirement Account (IRA) is a tax-sheltered savings plan that is established by an individual for retirement purposes.  The funds contributed to the IRA are not taxed until the funds are withdrawn from the account.  

Roth IRA
A Roth IRA is similar to an IRA; however it is not tax sheltered, meaning the funds are taxed before being contributed to the Roth IRA.  The contributions that are accumulated will remain tax-free until funds are withdrawn

SIMPLE IRA
A SIMPLE IRA is an employer-provided retirement solution.  The SIMPLE IRA  is similar to a traditional 401(k) plan, allowing both employer and employee contributions.  A SIMPLE IRA is ideal for smaller, start-up retirement savings plans.   SIMPLE plans are ideal for an eligible employer; a company has to have fewer than 100 employees, because their administrative costs are much lower.   

SEP IRA
A simplified employee benefit pension plan (SEP) is a plan established and funded by the employer.   The contributions submitted to the plan are deposited into the employees' Traditional IRAs established in the employees' names.   Similar to Traditional IRAs, all earning are tax-deferred, meaning the earnings are not taxed until they are withdrawn from the account. 

Non-Qualified Accounts
Non-qualified dollars are simply dollars being invested on which you have already paid income tax.  You will not have to pay income taxes when you withdraw your money like you do when you make a withdrawal from a 401k plan or a traditional IRA.  However, you may pay capital gains taxes arising from the sale of investments.  You will also have to pay taxes on interest and dividends generated on your investments from year to year.  You can think of non-qualified dollars as a savings account that can invest in stocks and bonds.  Non-qualified dollars are one way to save for retirement if you have extra savings that you do not immediately need, or if you are already maxing out 401k and IRA contributions from year to year.