Whether you’re planning to retire in a couple years or a couple decades, one of the plans you should consider right now is anIndividual Retirement Account (IRA). For many retirement savers, a Discover®IRA Certificate of Deposit (CD) or DiscoverIRA Savings Accountmay be the right solution...
If you're ready to start investing for retirement, an IRA may be one of the best tools out there to maximize your money and minimize your tax burden.
Defined Benefit Plans Also known as a pension, this used to be a popular type of retirement plan. But it has largely given way to the more employer-friendly 401(k). A defined benefit plan is an employer-sponsored retirement plan. It differs from a 401(k) in that it includes a guarante...
Saving money for retirement in an IRA can help workers enjoy a secure financial future while also taking advantage of tax benefits. And for those who already have 401(k) plans through their employers, opening an IRA can serve as an additional place to save even more money for retirement. ...
To learn more, check out these resources from the IRS about 403(b)sOpens in a new window. Pension Pensions are not technically an account, but they are another way people save for retirement. Although far less common than during their peak in the 1970s, pension plans are still offered by...
There’s another type of IRA too, therollover IRA.But that’s basically either a traditional or Roth IRA, into which you roll over the funds from other retirement plans, including other IRAs. There are some provisions with these accounts, but they’re specific to theplan that’s been roll...
Non-qualified retirement plans include certain attributions: The plan does not need to be approved by the IRS This plan can discriminate in favor of particular employees The contributions in this plan are not tax-deductible A non-qualified retirement plan does not have a maximum contribution amount...
Contributions to a 401(k) plan, a 403(b) plan, or a Government Thrift Savings Plan are deducted from an employee’s gross earnings prior to any taxation. Every dollar placed into one of these retirement savings plans reduces an individual’s taxable income by an equal amount. ...
also stands for "individual retirement account," a type of plan that one can pay into throughout one's career and withdraw from in retirement. In such cases, a plan would be both a retirement account for a specific person and an individual retirement arrangement in the eyes of the IRS. ...
Unlike other kinds of retirement plans, a 401(k) allows the employee the ability to borrow a percentage of their funds in the plan. However, early withdrawals before the age of 59½ will incur a 10% penalty from the Internal Revenue Service (IRS) in addition to income taxes on the dis...