Retirement Accounts

Traditional IRA- A traditional IRA is a type of individual retirement account that lets your earnings grow tax-deferred. You pay taxes on your investment gains only when you make withdrawals in retirement.

Roth IRA- An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.

401K- A contribution plan offered by a company where an employee can make contributions from his or her paycheck into a 401K. Taxes aren’t paid until the money is withdrawn from the account.

403B- A 401K, but instead of being offered by companies it is offered by schools and nonprofit organizations