- 403(b) - If you are employed
by a non-profit organization (school, hospital, church or charitable foundation), you are eligible to participate in a 403(b) if it is offered by your
employer.
- Keogh Plan - Keoghs are tax-advantaged retirement plans that allow participants to
contribute up to $40,000 or 25% of their eligible income (whichever is less) each year. Contributions are made pre-tax, and investment earnings aren't taxed
until withdrawals are taken.
- SEP-IRA - A Simplified Employee Pension Plan is especially suited for the
self-employed, unincorporated businesses or small corporations. It allows the employer to make contributions on your behalf to a tax-sheltered retirement
savings plan (limits set each year). Contributions are excluded from gross income.
Personal Retirement Savings
The most popular example is the Individual Retirement
Account or IRA, which can come in different types according to their tax treatment. Both traditional IRAs and Roth IRAs can be used in addition to 401(k)
or Keogh plans to help build retirement funds on a tax-deferred basis.
The preferential tax treatment applies to all
dividends, interest, and capital gains until the age of retirement, which is 59½. Annual contributions are tax-deductible if certain IRS
requirements are met. Learn More About IRAs
The types of IRAs that are now available are:
- Traditional IRA
- Roth IRA
- Spousal IRA
- Rollover IRA
- Educational IRA
(Educational Savings Account)
- SEP-IRA
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