ESA

Coverdell Education Savings Account: A tax-deferred account created by the U.S. government to assist families in funding educational expenses.

QUAL

Qualified Retirement: A plan that meets requirements of the Internal Revenue Code and as a result is eligible to receive certain tax benefits. These plans must be for the exclusive benefit of employees or their beneficiaries.

SIMP

Simple IRA: A savings incentive match plan for employees. It gives small employers a simplified method to make contributions toward their employees’ retirement and their own retirement. Under a Simple IRA plan, employees may choose to make salary reduction contributions and the employer makes matching or non-elective contributions. All contributions are made directly to an IRA set up for each employee.

TRAD

Traditional IRA: A traditional IRA is a personal savings plan that provides tax advantages for saving for retirement. Contributions to a traditional IRA may be tax deductible – either in whole or in part. Also, the earnings on the amounts in your IRA are not taxed until they are distributed. The portion of the contributions that was tax deductible also does not get taxed until distributed.

ROTH

Roth IRA: A personal savings plan but operates somewhat in reverse compared to a traditional IRA. For instance, contributions to a Roth IRA are not tax deductible while contributions to a traditional IRA may be deductible. However, while distributions (including earnings) from a traditional IRA may be included in income, the distributions (including earnings) from a Roth IRA are not included in income. For both IRA types – traditional and Roth – earnings that remain in the account are not taxed.