We offer a variety of investment accounts for individuals or businesses. Learn more about the types of accounts we offer below. And of course you can always call us for help when deciding which account or retirement plan is best for you.
Personal Investment Accounts
An individual account is a taxable investment account owned by one person. It transfers to your estate upon death.
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 in this account will pass directly to another person or entity (your TOD beneficiary) upon your death without going through the lengthy, costly, and public probate process.
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
The traditional individual retirement account (traditional 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, an amount called your required minimum distribution (RMD).
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.
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 Earnings grow tax-deferred until withdrawn, but contributions are never tax-deductible.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 the child. It is managed by a custodian — usually a parent — and its assets are considered an irrevocable gift to the child.
Retirement Accounts for Sole Proprietors and Small Businesses
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.
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.
An individual 401(k) is a retirement account suitable for self-employed people 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 Medium-Sized Businesses
This popular employer-sponsored retirement plan permits a higher level of salary deferrals by employees than other retirement plans. 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
A 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
A 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 firstname.lastname@example.org.
Note: Azzad Asset Management does not provide tax or legal advice.