401(k) Plans

IRS Site: 401(k) Plans These employer sponsored plans account for the majority of people's retirement planning.  Most people approach this by deferring a percentage of their salary each paycheck into an account they can barely decipher.  Typically, an employer offers to match, up to a certain percentage amount, the employee's salary deferrals.  For instance, XYZ Corp. can … Continue reading 401(k) Plans

Tax-Advantaged Retirement Accounts

Tax-Advantaged Retirement Accounts are accounts that IRS rules allow for a certain advantages when an individual sets up and makes contributions to a retirement account. Common types include: 401(k) Plans Traditional IRA Rollover IRA Roth IRA Other types of retirement accounts Traditional IRAs and 401(k)s operate in a similar manner. The investor places pretax dollars … Continue reading Tax-Advantaged Retirement Accounts

Pretax vs. After-Tax Investment Dollars

Most people have access to a few different types of Tax-Advantaged Retirement Accounts.  We will get to the types of individual retirement accounts in a moment.  First I want to explain the huge advantage of making investments with pretax dollars. The main advantage of these types of accounts is twofold: The money invested are pretax … Continue reading Pretax vs. After-Tax Investment Dollars