Contributions may be deducted from your annual income in that tax year. Taxes are paid upon distribution of cash or assets at your income tax rate in the tax year of the distribution.
Annual contributions do not come with a tax deduction, but qualified distributions of the account’s contributions and earnings can be 100% tax-free.
An HSA is an individual, custodial account that functions much like an IRA. However, they feature the ability to use untaxed money to pay for qualified medical expenses. HSAs are not “use it or lose it” like FSAs, nor are they controlled by your employer like HRAs.
A SIMPLE IRA is an employer plan that allows annual contributions by both the employer and the employee, each of whom may get a tax deduction in the tax year of the contribution. These are popular among companies with 100 or fewer employees.
When an account holder passes away, the account is inherited by that account holder's designated beneficiary or beneficiaries. At that time, the IRA becomes an Inherited IRA and some of the contribution and distribution rules change.
A Solo 401(k) is simply a 401(k) plan for the self-employed. NDTCO can provide you with a plan document and/or bookkeeping for your plan.
Employer plan with the same tax advantages as a traditional IRA. However, unlike a traditional IRA, annual contributions are made by the sponsoring employer from business revenue and the employer gets the tax deduction.
ESA contributions must be included in your income, but distributions for qualified education expenses can be 100% tax-free.