Most common types of retirement accountsCheck out in Detail
401(k) Plans: These are employer-sponsored retirement accounts that allow employees to contribute pre-tax dollars to an investment account. Employers may also match a portion of the employee's contributions.
Traditional IRA: A traditional individual retirement account (IRA) allows individuals to contribute pre-tax dollars, which may reduce their taxable income. Withdrawals from a traditional IRA are taxed as ordinary income.
Roth IRA: A Roth IRA is a retirement account that allows individuals to contribute after-tax dollars. Withdrawals from a Roth IRA are tax-free, as long as certain requirements are met.
Simplified Employee Pension (SEP) IRA: A SEP IRA is an employer-sponsored retirement account that allows employers to contribute on behalf of their employees.
Solo 401(k): A Solo 401(k) is a retirement account designed for self-employed individuals and small business owners with no employees. It allows for higher contribution limits than a traditional IRA.
Roth 401(k): A Roth 401(k) is similar to a traditional 401(k) but allows employees to contribute after-tax dollars. Withdrawals from a Roth 401(k) are tax-free, as long as certain requirements are met.
403(b) Plans: These are retirement accounts designed for employees of non-profit organizations, public schools, and some government organizations.
Thrift Savings Plan (TSP): The TSP is a retirement savings plan for federal employees and members of the military.
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