Individual Retirement Accounts - Kinds of IRAs and Prohibited Transactions

This handout discusses the various types of IRAs and the tax benefits and implications of each. It also discusses the effect of the taxpayer's participation in prohibited transactions within these types of accounts.

HIGHLIGHTS: 

1. Traditional IRAs.

2. Simplified employee pensions (SEP).

3. SIMPLE IRAs.

4. Roth IRAs.

CLIENTS WHO MAY BENEFIT:

1. Taxpayers who want to understand the differences in the types of IRAs.

2. Taxpayers who want to know what an IRA can be invested in and what it cannot be invested in.