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Retirement Planning
Retirement Accounts
Tax-advantaged accounts designed to help you save for retirement. Understanding the differences can save you thousands in taxes.
Tax Treatment
Tax-Free
Contributions (Now)
Taxed
Withdrawals (Later)
Advantages
- Employer matching (free money)
- Higher contribution limits
- Automatic payroll deduction
- Tax-deferred growth
Disadvantages
- Limited investment options
- Taxed as income in retirement
- Required minimum distributions
- Early withdrawal penalties
2024 Contribution Limit
$23,000
Catch-Up Contribution
$7,500 (50+)
Early Withdrawal Penalty
10% before 59.5
Special Feature
Employer Matching
Always contribute enough to get the full match - it's free money!
Which Should You Choose?
401(k) First If...
- Your employer offers a match
- You want higher contribution limits
- You prefer automatic deductions
Roth IRA If...
- You expect higher taxes in retirement
- You want tax-free growth
- You're early in your career
Traditional IRA If...
- You need a tax break now
- You expect lower taxes later
- You exceed Roth income limits