Account Types

Learn more about the types of accounts we offer below.

Personal Accounts

Personal Investment Accounts

Individual

An Individual Account is a taxable investment account owned by one person. It transfers to your estate upon death.

Joint Accounts

A Joint Account is a taxable investment account owned by two (or more) people for the benefit of all account owners. Joint account options include: Joint with Rights of Survivorship, Joint Tenants in Common, Joint Community Property and Joint Tenants by Entirety.

Transfer on Death (TOD)

By registering your Individual investment account as Transfer on Death, securities you own will pass directly to another person or entity (your TOD beneficiary) upon your death without going through the lengthy, costly and public probate process.

Trust Accounts

There are many different kinds of trusts, each designed for a specific estate planning purpose. A trust account can help you avoid probate, minimize estate taxes, protect assets from creditors and more.

Retirement Accounts for Individuals

Traditional IRA

The Traditional Individual Retirement Account (IRA) provides certain tax advantages to encourage you to save for retirement. Your earnings grow tax-deferred until you withdraw them. In many cases, your IRA contributions may also be tax-deductible. However, you must start withdrawing your money at age 70½; this is called your Required Minimum Distribution or RMD.

Roth IRA

The Roth IRA is similar to a Traditional IRA in that earnings grow tax-deferred until you withdraw them. Although Roth IRA contributions are never tax-deductible, withdrawals may be completely tax-free if certain requirements are met.

Rollover IRA

A Rollover IRA allows you to transfer your retirement savings from an employer plan, such as a 401(k), when you change jobs or retire, without having to pay taxes or penalties. You simply roll your 401(k) into this type of IRA account. Your money will continue to grow with the same tax-deferred advantages you previously enjoyed.

Savings Accounts for Children

Coverdell Education Savings Account (ESA)

The Coverdell ESA is a tax-advantaged savings plan that lets you save money for college as well as elementary and secondary school. Earnings grow tax-deferred until withdrawn, but contributions are never tax-deductible. Withdrawals used to pay for qualified education expenses are tax-free.

Custodial Account (UGMA/UTMA)

A Custodial Account under the Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) can be used to save for college or anything else that benefits your child. It is managed by a custodian (usually a parent), and its assets are considered an irrevocable gift to your child.

Business Accounts

Retirement Accounts for Sole Proprietors and Small Businesses

SEP IRA

The SEP IRA is established by employers for employees or by self-employed individuals for their own benefit. Employers make tax-deductible contributions on behalf of their eligible employees. In return, the employer is allowed a tax deduction for plan contributions. Your earnings grow tax-deferred until withdrawn.

SIMPLE IRA

A SIMPLE IRA is an easy way for a small business to set up a retirement plan. The employer makes tax-deductible contributions to the plan in the form of either matching or non-elective contributions, and the employee makes salary deferral contributions.

Individual 401(k)s

An Individual 401(k) is a retirement account suitable for self-employed persons and owner-only businesses that want to make substantial contributions toward their retirement. It has many of the same advantages as a regular 401(k) plan, but without the hassle of annual filings.

Retirement Accounts for Small- to Mid-Size Businesses

401(k) Plan

This popular employer-sponsored retirement plan permits a higher level of salary deferrals by employees than other retirement plans. Of course, contributions are tax-deductible and earnings grow tax-deferred. Unlike a SEP or SIMPLE IRA, this account requires certain administrative services and annual filings.

Profit Sharing Plan

The Profit Sharing Plan is a popular choice for employers because it allows them to make a contribution that is spread among plan participants. Features such as delayed vesting and stricter eligibility requirements provide more control over your plan.

Defined Benefit Plan

The Defined Benefit Plan can potentially offer the largest contribution deduction and the highest retirement benefits to business owners. It is best for highly-compensated business owners who want to aggressively save for retirement in a relatively short time. A Defined Benefit Plan requires the services of a certified actuary.

Life’s goals require careful planning. Contact us to speak with an investment adviser who can help guide you in the right direction. Call 888-862-9923 or email info@azzadfunds.com.

Note: Azzad Asset Management does not provide tax or legal advice.