We offer a few different kinds of Morgan Stanley Access Investing accounts*:
This is a Morgan Stanley Access Investing account owned by a single person. The main benefit of this type of account is flexibility: you can withdraw your cash when you choose. You’ll pay taxes on any investment earnings.
o Traditional IRA
Individual Retirement Accounts (IRAs) are specifically designed for retirement savings. With a traditional IRA, your contributions are tax deductible–so you’ll pay less in income taxes the year you make your contributions–and you won’t pay taxes on your earnings until you retire. (If you make withdrawals from an IRA earlier than your retirement age, you’ll pay taxes and penalties.)
o Roth IRA
In a Roth IRA, your contributions are taxed upfront–so you don’t get a tax break the year you contribute–but you won’t pay taxes on your earnings when you retire. This could be a good option if you expect to pay a higher tax rate in the future than you do now (for example, if you expect your income to go up).
Note: You may not be eligible to open a Roth IRA if your income is above a certain threshold.