Deposit at Custodian (DWAC)

A deposit at custodian (DWAC) is a type of deposit that is held by a custodian, such as a bank or trust company. The custodian is responsible for holding the funds in trust for the benefit of the depositor. DWACs are often used for retirement savings, as they offer a safe and secure way to invest money.

There are a few different types of DWACs, each with its own set of features and benefits. Some of the most common types of DWACs include:

* **Traditional DWACs:** These are the most basic type of DWACs, and they offer a simple and straightforward way to invest money. Traditional DWACs typically offer a low interest rate, but they are also very safe.
* **Roth DWACs:** Roth DWACs are similar to traditional DWACs, but they offer some additional tax benefits. With a Roth DWAC, you can contribute after-tax money, and your earnings will grow tax-free.
* **SEP-IRA DWACs:** SEP-IRA DWACs are designed for self-employed individuals. With a SEP-IRA DWAC, you can contribute up to 25% of your net self-employment income, up to a maximum of $58,000 in 2023.
* **SIMPLE IRA DWACs:** SIMPLE IRA DWACs are designed for small businesses. With a SIMPLE IRA DWAC, your employer can make contributions on your behalf, and you can also make voluntary contributions.

DWACs can be a great way to save for retirement or other long-term goals. However, it is important to understand the different types of DWACs before you make a decision. You should also compare the different custodians to find one that offers the best features and services.