What are the types of IRA accounts available?


Quick Answer

There are many types of IRAs, or individual retirement accounts, notes The Motley Fool. These include one of the most common, which are traditional or Roth IRAs through brokers, banks or mutual funds, with contributions usually invested in securities, such as money market accounts, bonds, stocks and certificates of deposit. Investors might also have individual retirement annuities set up with life insurance companies by purchasing annuities contracts, or an employer or employee association trust account, which is also known as a group IRA and is usually offered by employers, employee associations or unions.

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Full Answer

Another type of IRA is the simplified employee pension, or SEP IRA, notes The Motley Fool. This IRA is an employer provided fund. The savings incentive match plan for employees IRA or SIMPLE IRA, is an IRA designed for small employers that allows for savings matches between employer and employee.

A spousal IRA is another common IRA type, reports The Motley Fool. This type of IRA is established by a working spouse for a spouse who makes less than $2,000 annually. A rollover or conduit IRA is an IRA that is set up to receive distributions from another qualified retirement plan. Other types of IRAs include education IRAs specifically established to allow the recipient to attend a higher education program, and an inherited IRA, which is an IRA that comes to the owner via a decedent's distribution of property.

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