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Types of Retirement Plans
Here are brief descriptions of the most popular retirement accounts, each of which has more detailed rules. Please consult your financial advisor for more information.

• Individual Retirement Arrangement (IRA). This allows individuals to set aside money each year, reducing taxable income. Earnings are tax-deferred until withdrawals begin at age 59 1/2 or later.

• Roth Individual Retirement Arrangement (Roth IRA).  Taxes are paid on individual contributions, but earnings grow tax free and withdrawals are generally not taxed.

• Simplified Employee Pension Individual Retirement Arrangement (SEP IRA). Designed for the self-employed or owners of small companies, this account allows individuals to defer taxes on contributions until retirement.

• 401(k). A defined-contribution plan offered by a company, which allows employees to make tax-deferred contributions for retirement; in some cases employers match those contributions.

• Individual 401(k), sometimes called a solo 401(k) or a uni-401(k) plan. This plans is designed for one-owner businesses and requires far less paperwork than a traditional 401(k).