Tag: 401(k) Plans

Retirement accounts in the United States are an essential part of financial planning for individuals and families. Here are some key concepts and considerations related to retirement accounts: 401(k) Plans: A 401(k) is a popular employer-sponsored retirement plan offered by many private sector companies. It allows employees to contribute a portion of their pre-tax income to a retirement account, and some employers may match a percentage of the employee's contributions. Individual Retirement Accounts (IRAs): IRAs are retirement accounts that individuals can open and contribute to on their own. There are two main types of IRAs: Traditional IRAs, where contributions may be tax-deductible, and Roth IRAs, where contributions are made with after-tax income but qualified withdrawals are t...