Straight talk: There are many rules related to tax-advantaged accounts. Before you contribute, it's important to have an understanding of these limitations:
A Traditional IRA can be a smart solution to increase your tax-deffered retirement savings.
Eventually, you'll be taxed on your contributions and earnings.
Once you turn 59 1/2, you can access your funds penalty free.
With a Roth IRA account, you won't pay taxes as your money potentially grows, and you can make tax-free withdrawals during retirement.
Qualified withdrawals after age 59½ are tax-free and penalty free.
A Coverdell ESA is great way to help pay for your child's educational expenses, such as tuition, fees, books, supplies, and equipment.
The account earnings grow on a tax-deferred basis. Withdrawals are tax-free when the funds are used for qualified education expenses. A beneficiary can be anyone younger than 18.