IRAs, 401(k)s and More

Consumers are fortunate to have a variety of retirement savings opportunities available to them that can be used to save for retirement and save on some taxes. These options are especially important now that traditional pensions and other employer-funded retirement plans have become increasingly rare. One big challenge, though, is determining which retirement savings options may be right for you.

Many people would appreciate and need help understanding fundamental concepts regarding retirement plans, which could be their most important savings for their future.

If you understand the basic characteristics of different types of retirement options available from banks and other institutions, you, perhaps in consultation with a financial or tax advisor, can make the right choices.

Here are a few issues to consider for the most common types of retirement plans that are self-directed, meaning that the consumer chooses how and where the money is deposited or invested. (Note: We use "retirement plan" to refer to one of several types of savings programs offered by a financial institution or an employer, and "retirement account" for an individual's funds within a retirement plan.)

Tax Considerations
In general there are two kinds of self-directed retirement plans: those that are tax-deferred and those that are after-tax.

Tax-deferred retirement plans, which include traditional Individual

Retirement Accounts (IRAs) and employer-sponsored 401(k)s, allow you to reduce your taxable income by the amount of the deposits or investments made each year. Your contribution Read More>>