3 Common Retirement Accounts

3 Most Common Retirement Accounts

401K/ 403b

• Provided through employer
• Pre-tax contributions/ Taxed withdrawals
• Possibility of employer match
• Not subject to income limits
• Higher contribution limit than IRAs
• Earliest Distribution Age: 59.5
• Required Minimum Distribution Age: 70.5 (unless you are still working)

Traditional IRA

• Individual account provided by financial institution
• Pre-tax contributions/ Taxed withdrawals
• Limits exist for the amount of contributions you can deduct on your taxes.
• Lower contribution limits than 401k/ 403b
• Earliest Distribution Age: 59.5
• Required Minimum Distribution Age: 70.5

Roth IRA

• Individual account provided by financial institution
• After-tax contributions/ Tax free withdrawals
• Income limits exists
• Lower contribution limits than 401k/ 403b
• Can withdraw the amount you have contributed at any time tax free. (If you withdraw the earnings on your contributions you may face taxes and penalties.)
• Required Minimum Distribution Age: None!

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