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9 Types of Retirement Plans for March 2024

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Traditional IRA

Any taxable income earner may create and manage a retirement account. Once you contribute, your IRA money will grow tax-free until you remove it.

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Roth IRA

A Roth IRA is similar to a traditional IRA. The primary difference between them is that with a traditional IRA, you pay taxes when you withdraw your contributions.

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SEP-IRA

A Simplified Employee Pension IRA is an IRA specifically designed for people who are self-employed or run their own businesses.

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SIMPLE IRA

A Savings Incentive Match Plan for Employees IRA is also intended for use by small-business owners. To qualify for a SIMPLE IRA, a business must have 100 employees or fewer.

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401(k)

A 401(k) is the most common retirement plan offered by employers. A 401(k) is tax-free until you are ready to withdraw the money, at which point you pay income tax on the amount you take out.

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Solo 401(k)

A solo 401(k) is similar to a standard 401(k), but it’s for self-employed individuals with no employees. This type of retirement plan treats you as both an employer and an employee.

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403(b)

A 403(b) plan is similar to a 401(k), but it’s offered to employees of public schools and certain nonprofits, such as churches and 501(c)(3) organizations.

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Annuity

You and an insurance firm contract for annuities. If you pay a lump amount or in installments, the insurance company promises to provide one or more payments and maybe a death benefit.

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