No, MissionSquare is not an IRA itself. Instead, MissionSquare is a financial services organization that offers various types of Individual Retirement Accounts (IRAs) to help individuals save for retirement.
Understanding MissionSquare and IRAs
It's important to distinguish between a financial institution or provider and the financial products they offer.
- MissionSquare (formerly ICMA-RC) is a not-for-profit financial services company that provides retirement plans and related services to the public sector, including government employees and their families. They administer various retirement savings vehicles.
- IRA (Individual Retirement Account) is a type of savings plan, defined by the IRS, that allows individuals to save for retirement with tax-advantaged growth. IRAs are accounts, not institutions.
Types of IRAs Offered by MissionSquare
MissionSquare offers a range of IRA options designed to meet different retirement savings needs, including:
- Traditional IRAs: Contributions may be tax-deductible in the year they are made, and earnings grow tax-deferred until retirement when withdrawals are taxed as ordinary income.
- Roth IRAs: Contributions are made with after-tax dollars, meaning they are not tax-deductible. However, qualified withdrawals in retirement are entirely tax-free.
- SEP IRAs (Simplified Employee Pension IRAs): These are retirement plans primarily for self-employed individuals and small business owners. They allow employers to contribute directly to an IRA set up for each eligible employee, including the owner.
| IRA Type | Contribution Tax Treatment | Withdrawal Tax Treatment (Qualified) | Ideal For |
|---|---|---|---|
| Traditional | Potentially Tax-Deductible | Taxable in Retirement | Those who expect to be in a lower tax bracket in retirement |
| Roth | After-Tax | Tax-Free in Retirement | Those who expect to be in a higher tax bracket in retirement |
| SEP | Tax-Deductible for Employer | Taxable in Retirement | Self-employed individuals and small business owners |
These offerings provide flexibility, allowing individuals to choose an IRA that aligns with their financial goals and tax situation. For more detailed information, you can visit the MissionSquare Retirement website.
