Employer plans (401k / 403b)
Contributions often come pre-tax; growth is tax-deferred until withdrawal. Many employers match a portion—free money you should not leave behind. Vesting schedules determine when employer contributions are fully yours.
Traditional vs. Roth IRA
Traditional IRA: may be tax-deductible now; taxed on withdrawal. Roth IRA: after-tax contributions; qualified withdrawals tax-free in retirement. Roth can suit younger workers or those expecting higher future tax rates.
Contribution limits and catch-ups
IRS sets annual limits (check current year on IRS.gov). Workers 50+ may have catch-up contributions. Spousal IRA rules can help non-working spouses save in their own name.
Ready to go deeper?
Life stage: 50s planning →Frequently asked questions
Can I have both 401k and IRA?▼
Yes, subject to income limits for IRA deductibility and Roth eligibility.
What if I left a job with a 401k?▼
Options include leave in plan, roll to new employer plan, or roll to IRA—compare fees and investment choices.
When can I withdraw without penalty?▼
Generally age 59½ for retirement accounts, with exceptions for hardship and Roth contributions.