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//TIMESTAMPS//
00:00 – Defined Contribution Plans
00:32 – 401(K) Plans
01:04 – 403(B) Plans
01:36 – 457(B) Plans
02:28 – IRA Plans
03:24 – Roth IRA
03:52 – Spousal IRA
04:40 – Rollover IRA
04:53 – SEP IRA
05:25 – Simple IRA
06:19 – Solo 401(K) Plan
07:41 – Traditional Pensions
09:08 – Guaranteed Income Annuities (GIAS)
10:40 – The Federal Thrift Savings Plan (TSP)
11:55 – Conclusion…(read more)

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retirement planning can be a daunting task, especially with so many different retirement account options available in the United States. From 401(k)s to IRAs to SEPs, it can be overwhelming to understand the nuances of each account and decide which one is best for your financial future. In this article, we will break down every retirement account in the US in 12 minutes or less, giving you a comprehensive overview of each account so you can make informed decisions about your retirement savings.

1. 401(k): a 401(k) is a retirement savings account offered by employers that allows employees to contribute a portion of their pre-tax earnings to the account. Employers may also match a percentage of the employee’s contributions, providing additional savings. Contributions to a traditional 401(k) are tax-deferred, meaning they are not taxed until the money is withdrawn in retirement. Roth 401(k) accounts are also available, where contributions are made with after-tax dollars, but withdrawals in retirement are tax-free.

2. Individual retirement account (IRA): an IRA is a retirement savings account that individuals can open on their own. There are two main types of IRAs: traditional and Roth. Contributions to a traditional IRA are tax-deductible, and taxes are paid upon withdrawal in retirement. Roth IRA contributions are made with after-tax dollars, and withdrawals in retirement are tax-free. IRAs have a maximum contribution limit each year, and there are income limits for Roth IRAs.

3. Roth IRA: a Roth IRA is a type of individual retirement account where contributions are made with after-tax dollars, meaning withdrawals in retirement are tax-free. There are income limits for Roth IRA eligibility, and contributions are subject to annual contribution limits.

4. Simplified Employee Pension (SEP) IRA: a SEP IRA is a retirement plan for self-employed individuals or small business owners. Employers can contribute to their own SEP IRA as well as their employees’ accounts. Contributions are tax-deductible, and withdrawals are taxed as ordinary income in retirement.

5. Solo 401(k): a Solo 401(k) is a retirement plan for self-employed individuals or small business owners with no employees (except a spouse). Contributions can be made as both the employer and the employee, allowing for higher contribution limits than a traditional 401(k). Contributions are tax-deductible, and withdrawals are taxed as ordinary income in retirement.

6. Thrift Savings Plan (TSP): a TSP is a retirement savings plan for federal employees and members of the armed forces. Contributions are tax-deferred, and withdrawals are taxed as ordinary income in retirement. TSP accounts can also be converted to IRAs upon retirement.

7. 457 Plan: a 457 plan is a retirement plan for state and local government employees, as well as certain non-profit organizations. Contributions are tax-deferred, and withdrawals are taxed as ordinary income in retirement. 457 plans also have catch-up contributions for employees nearing retirement age.

8. Defined Benefit Plan: a defined benefit plan is a traditional pension plan that provides a predetermined retirement benefit based on salary and years of service. Employers are responsible for funding and managing the plan, and employees receive a fixed benefit upon retirement.

9. Cash Balance Plan: a cash balance plan is a hybrid retirement plan that combines elements of a defined benefit plan and a defined contribution plan. The plan provides a predetermined retirement benefit, but the benefit is presented as a cash balance that grows annually based on contributions and interest credits.

10. 403(b) Plan: a 403(b) plan is a retirement savings plan for employees of non-profit organizations, such as schools, hospitals, and religious organizations. Contributions are tax-deferred, and withdrawals are taxed as ordinary income. Many 403(b) plans offer employer matching contributions as well.

11. Profit-Sharing Plan: a profit-sharing plan is a retirement plan where employers make contributions to their employees’ accounts based on the company’s profits. Contributions are tax-deductible for employers, and withdrawals are taxed as ordinary income in retirement.

12. Employee Stock Ownership Plan (ESOP): an ESOP is a retirement plan that allows employees to become partial owners of the company through stock ownership. Employers contribute company stock to the plan, and employees receive benefits based on the performance of the stock.

In conclusion, there are many different retirement account options available in the US, each with its own advantages and considerations. By understanding the features and benefits of each account, you can make informed decisions about your retirement savings and ensure a secure financial future. Consult with a financial advisor to determine which retirement account(s) are best suited to your individual needs and goals.