Account Creator

• Traditional IRAs and Roth IRAs can only be created by individuals. Employers can create and contribute to Savings Incentive Match Plans for Employees (SIMPLE) IRAs and Simplified Employee Pension Plans (SEP) IRAs.
  
  

Tax Benefits

• Tax-deferred IRAs, including traditional, SEP and SIMPLE IRAs, offer a tax deduction for contributions but tax withdrawals, even ones taken at retirement. Roth IRAs do not permit a deduction for contributions, but qualified withdrawals can be taken completely tax-free. Qualified withdrawals from Roth IRAs require the account holder to be at least 59.5 years old and the account must be at least five tax years old.
  
  

Size

• You can only contribute a total of $5,000 ($6,000 if you are 50 or older) to Roth IRAs, SEP and traditional IRAs, as of 2010. These IRAs do not accept employer contributions. You can put up to $11,500 ($14,000 if you are age 50 or older) in a SIMPLE IRA. Employers can contribute up to 25 percent of your earnings for the year to an SEP IRA, up to $49,000. For SIMPLE IRAs, employers can either match up to 3 percent of your earnings or contribute 2 percent of every employee's earnings, regardless of employee contributions.