Saving for retirement is made easier by tax-advantaged accounts like 401(k)s and IRAs. Here is what you should know about these accounts.<\/p>\n
A 401(k) is a retirement savings account provided by one’s employer, who may also match the employee’s contributions up to a certain amount. Contributions are deducted from an employee’s paycheck before taxes, so taxes are not paid until the funds are withdrawn during retirement. For 2013, the maximum pre-tax contribution is $17,500.<\/p>\n
An individual retirement account (IRA) is another type of retirement savings plan. One type, the Savings Incentive Match Plan for Employees (SIMPLE) IRA, functions much like a 401(k), in that an employer matches employee contributions. The other types of IRAs are not connected to one’s employer. The most common types are traditional IRAs and Roth IRAs.<\/p>\n
With a traditional IRA, funds are deposited before taxes, and withdrawals upon retirement are taxed as income. By contrast, with a Roth IRA, contributions (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Saving for retirement is made easier by tax-advantaged accounts like 401(k)s and IRAs. Here is what you should know about these accounts. A 401(k) is a retirement savings account provided by one’s employer, who may also match the employee’s contributions…<\/span><\/p>\n