For many Americans, saving for retirement is an important, long-term goal. To encourage such savings, federal income tax law provides for a number of tax-advantaged retirement saving plans. Some of these plans, including traditional Individual Retirement Accounts (IRAs) and Roth IRAs, are available to individuals with earned income. Other types of plans are set up by a firm for the benefit of the firm’s employees. The table below summarizes how some of the key “employer-sponsored” plans work and illustrates the differences between them.
What are the differences between employer sponsored retirement plans?
Take a brief look at the differences between various employer-sponsored retirement plans.