Consumers can find retirement option information on the websites of U.S. News & World Report and the IRS, according to each website. These plans all require various investment requirements and have different tax implications.Continue Reading
Individuals self-employed or working for a company have different retirement options, reports U.S. News & World Report. A 401(k) or 403(b) plan is available from an employer, with the contributions to the plan withheld from a paycheck. Employees changing companies can roll over the 401(k) plan into a new account if necessary. Self-employed individuals can also contribute to a 401(k) plan as both an employer and an employee.
The SEP individual retirement account represents the simplified employee pension plan and benefits self-employed individuals and small businesses. Employers can contribute a certain percentage of income subject to certain limitations. Anyone can contribute to an IRA, subject to limitations based on year and age. The funds in an IRA appreciate tax-free; however, they are not available for distribution if greater than certain income thresholds. A Roth IRA works similarly; however, the contributed dollars are on a post-tax basis, notes U.S. News & World Report. The IRS also offers information on profit-sharing plans, defined benefit plans, money purchase plans and employee stock ownership plans, according to its website.Learn more about Financial Planning