What is a contribution? A contribution is a deposit of non-tax-advantaged funds into a self-directed IRA, 401(k), or another such acccount. Think of it as bringing a check to the bank for deposit, except your IRA deposit can grow in ways your checking and savings accounts never could!
Pre-Tax Contributions - Up to your full contribution amount can be deductible from your income for tax purposes.
Post-Tax Contributions - You pay normal taxes on your Roth IRA contributions, but you may distribute them at any time without paying duplicate taxes. In the meantime, your Roth IRA investments can grow tax-free.
Self-employed individuals can enjoy a significantly higher annual limit on their pre-tax contributions.
Automatically deposit a percentage from your paychecks and your employer will match the contributions (up to 3% of your income). Employers may also contribute 2% of income for all eligible employees.
As your business's sole employee, you can make employee (for a personal tax benefit) and employer (for a business tax benefit) contributions to the same account.
Health savings accounts (HSAs) allow tax-deferred contributions and tax-free distributions for qualified medical expenses.
Coverdell Education Savings Account (ESA) allows post-tax contributions and tax-free distributions for qualified education expenses.