1. Traditional IRA savings: A Traditional IRA savings account is a personal savings account that provides you tax benefits. Any contribution made to the account is tax free. However, the distributions from the account are taxable and the member must be above the age required by the IRS to avoid a tax penalty.
2. Roth IRA savings: A Roth IRA savings account offers tax-free distributions after 5 years of opening the account. Account earnings are also tax free. However, distributions from this account before the specified period are taxable. Contributions to this account are allowed and are taxable regardless of the member’s age.
3. SEP IRA savings: A Simplified Employee Pension (SEP) IRA savings account is a retirement account specifically designed for self-employed individuals and small business owners. A SEP IRA savings account is established and funded by the employer in the employee’s name or by the self-employed individual. Contributions are limited to a certain percentage of the individual’s income or the employee’s compensation. The tax treatment of a SEP IRA is similar to a Traditional IRA.
4. Education IRA savings: An Education IRA savings account is set up and funded by a contributor or contributors, for a minor. The earnings in this account and the distributions for qualified education expenses are tax free. All funds must be distributed by the time the beneficiary reaches the age of 30.

In FOCUS XP, the Other IRA Savings Account option can be used to create custom IRA account types by credit unions that offer additional IRA savings accounts to members, apart from the four standard types. This lesson does not cover the Other IRA Savings Account option.

All of these account types are subject to IRS terms and conditions. For more information about age, contribution and distribution limits, and about the IRA products offered by your credit union, consult your Compliance officer.