Plan Comparison
RETIREMENT PLANS FOR INDIVIDUALS
While both types of accounts are very similar in nature and provide the same investment options, there are a handful of key differences.
Use this chart to help determine which one may be right for you.
TRADITIONAL IRA
$395
PER YEAR
KEY FEATURES
TAX BENEFITS
Tax-Deferred Growth
ANNUAL CONTRIBUTION
$6,000
CATCH-UP CONTRIBUTION
(Age 50 or older)
$1,000
AGE REQUIREMENT
No
MODIFIED ADJUSTED GROSS INCOME (MAGI)
REQUIREMENTS TO MAKE REGULAR CONTRIBUTIONS
No
REQUIRED DISTRIBUTIONS
Yes (Starts Age 72)
WITHDRAWAL TAXES
Yes
EARLY-WITHDRAWAL PENALTIES
10% Penalty
(Under Age 59 1/2 unless there
is a penalty tax exception)
ROTH IRA
$395
TAX BENEFITS
Tax-Free Growth
(if certain requirements are met)
ANNUAL CONTRIBUTION
$6,000
CATCH-UP CONTRIBUTION
(Age 50 or older)
$1,000
AGE REQUIREMENT
No
MODIFIED ADJUSTED GROSS INCOME (MAGI)
REQUIREMENTS TO MAKE REGULAR CONTRIBUTIONS
Yes
REQUIRED DISTRIBUTIONS
No
WITHDRAWAL TAXES
No
(If the withdrawal meets the requirements
for a qualified distribution)
EARLY-WITHDRAWAL PENALTIES
10% Penalty on Earnings
(Under Age 59 1/2 unless there
is a penalty tax exception)
RETIREMENT PLANS FOR SMALL BUSINESSES
SEP IRA
$445
KEY FEATURES
ADDITIONAL PARTICIPANTS
Yes
TAX BENEFITS
Tax-Deferred Growth
EMPLOYER ANNUAL CONTRIBUTION
Up to $58,000
PERSONAL LOAN FROM ACCOUNT
No
WITHDRAWAL TAXES
Yes
EARLY-WITHDRAWAL PENALTIES
10% Penalty
(Under Age 59 1/2 unless there
is a penalty tax exception)
SIMPLE IRA
$445
ADDITIONAL PARTICIPANTS
Yes
TAX BENEFITS
Tax-Deferred Growth
EMPLOYER ANNUAL CONTRIBUTION
Employer can select one of three contribution options
EMPLOYEE ANNUAL CONTRIBUTION
$13,500
EMPLOYEE CATCH-UP CONTRIBUTION
(Age 50 or older)
$3,000
PERSONAL LOAN FROM ACCOUNT
No
WITHDRAWAL TAXES
Yes
EARLY-WITHDRAWAL PENALTIES
10% Penalty
(Under Age 59 1/2 and if not within the first 2 years since first contribution was deposited into the SIMPLE IRA, unless a penalty tax exception applies.)
25% Penalty
(Under Age 59 1/2 and if within the first 2 years since first contribution was deposited into the SIMPLE IRA, unless a penalty tax exception applies)
SOLO 401(k) PLAN
$495
ADDITIONAL PARTICIPANTS
Yes
TAX BENEFITS
Tax-Deferred Growth
(Tax-Free Growth if Certain Requirements Are Met)
EMPLOYER ANNUAL CONTRIBUTION
Up to $58,000
EMPLOYEE ANNUAL CONTRIBUTION
$19,500
EMPLOYEE CATCH-UP CONTRIBUTION
(Over Age 50)
$6,500
PERSONAL LOAN FROM ACCOUNT
Yes
WITHDRAWAL TAXES
Dependent on the type of funds being withdrawn
EARLY-WITHDRAWAL PENALTIES
10% Penalty
(Under Age 59 1/2 unless there is a penalty tax exception)
Frequently Asked Questions
How does your fee structure differ from other custodians who custody traditional and alternative assets?
Provident Trust Group offers a flat-rate annual fee. This differs from many other alternative asset custodians who may increase your annual fee based on an increase in the number of assets you select, value of your assets, or even the purchase of a different asset class.
Most custodians of traditional assets collect fees and/or commissions based off of the amount of trades or recommendations of investment choices. For our full fee schedule, click here.
What types of investments are prohibited with retirement accounts?
The IRS does not state which investments are permissible in a qualified account or retirement plan, but they do state specific asset classes that are prohibited. The IRS currently prohibits IRAs from investing in Life Insurance, Collectibles and S-Corps. Some examples of collectibles, include:
- Artwork,
- Rugs,
- Antiques,
- Metals – with exceptions for certain kinds of bullion,
- Gems,
- Stamps,
- Coins – (but there are exceptions for certain coins),
- Alcoholic beverages, and
- Certain other tangible personal property.
For more information, click here for the IRS Website.
Can my account invest with other partners, including myself?
Yes, your IRA can invest with other partners and yourself individually. However, it is important to consult legal counsel in these situations to observe formalities and rules that may be associated with that investment.
Why is Provident Trust Group listed as the owner of my asset?
As custodian, Provident Trust Group owns the assets in each account for the benefit of (FBO) your individual account. This means that Provident Trust Group executes all investment documents and all documents related to the sale of the asset. This titling also ensures that the IRS recognizes that you are not personally benefiting from the assets held in your account before retirement. This allows you to recognize any potential tax benefits for which you might be eligible.
Can Provident Trust Group provide tax or legal advice regarding your investment?
No. If you should need tax or legal advice regarding your investment, you may engage a specialized tax law firm to provide the needed advice.