| We, as adults, have to be very clear as to how we | | | | are also called tax deferred programs for self |
| should plan for our retirement years. In fact, you can | | | | employed people. Once again you can contribute as |
| retire with pride once you have the sufficient funds | | | | much as you want, but if you are looking for |
| to pass the rest of your life trouble and tension free. | | | | deductibles, you should not exceed the maximum |
| There are several choices available for financing your | | | | contribution limit. Even over contributing can cause |
| retirement and you should understand the pros and | | | | you to pay penalties. So, be wary of this. |
| cons of each plan. Let us take a brief look at some | | | | The 401k plans are retirement plans for private |
| of the retirement plans. | | | | sector employers. In these types of plans you agree |
| Individual retirement accounts, also called IRAs, are | | | | to put aside a certain amount of money each month. |
| accounts that you set up with any institution such as | | | | The contributions are done through direct payroll |
| banks or investment brokers. You can pay as much | | | | deductions. These plans have the same benefits as |
| as you want and you can also space your | | | | the traditional IRA plans. There are also the 403b |
| contributions to take advantage of tax benefits. | | | | plans that are very much like 401k plans, the only |
| There are traditional IRAs for moderate income | | | | difference being that they are people employed by |
| people and Roth IRAs are best for moderate and | | | | schools, non profit organizations and hospitals. These |
| high income people. Then there are the KEOGHs that | | | | plans are also tax deferred just like the 401k plans. |