Employee Compensation and Pension Plans free essay sample

A study of Individual Retirement Arrangement (IRA) and Roth-IRA personal retirement savings plans. This paper examines the viable options for personal retirement saving: Individual Retirement Arrangement (IRA) and the Roth-IRA. The paper describes the tax benefits of the funds and the annual contribution limits. It provides complex information on stock option plans and stock ownership plans. The paper is packed with statistics and charts on the financial benefits for these plans. Table of Contents 1. Individual Retirement Arrangement (IRA) and Roth-IRA 2. Traditional and Roth IRA 3. Annual Contribution Limits 4. Employee Stock Ownership Plan (ESOP) and 401(k) Plan 5. Incentive Stock Option Plan 6. References Generally called an Individual Retirement Account is a personal retirement savings plan that is available to anyone during the year who receives taxable compensation. For contribution purposes of IRA, compensation includes salaries, alimony, fees, wages, bonuses, commissions, tips, taxable and separate maintenance payments (Quinn. 1998).