Common Retirement Savings Plans

Lots of people have questions about different retirement options. There are various vehicles to put your retirement monies in, and the www.irs.gov site has many interesting pages that help describe in detail all the rules of some of the most well-known options.

He are several links to some specific pages about retirement plans:

If you’re an employee, you might have an option to contribute to a 401(k) (Roth or Pre-tax) if it is provided by your employer. If they do, quite often they will provide a matching percentage such as 0.5% for every 1% you contribute up to a maximum. If they offer this, take advantage of it! It’s free money!

If your employer doesn’t offer a 401(k) plan, if you want to save more, or, if you are self-employed, you can use the Roth IRA or Traditional IRA to save more for retirement.

If it has “Roth” in the name, the money is taken after you’ve paid taxes already. If it’s a Traditional IRA or a Pre-tax 401(k), money is taken out before taxes are paid so your current tax rate is less.

Once again, the main goal you should have is to save something, anything, for retirement.