Retirement Accounts
The tax-advantaged account types, what each one does, and where the rules differ. Contribution figures are 2025 and the IRS indexes them annually.
- 401(k)
- An employer-sponsored retirement account with tax advantages and, often, matching contributions.
- 401(k) Match
- Employer contributions made in proportion to your own, up to a stated ceiling.
- IRA (Individual Retirement Account)
- A retirement account you open independently of any employer, in traditional or Roth form.
- Roth IRA
- An after-tax retirement account where qualified withdrawals, growth included, are untaxed.
- Backdoor Roth IRA
- A non-deductible traditional IRA contribution converted to Roth, which the income limits do not restrict.
- Roth Conversion
- Moving a balance from a traditional account to a Roth, paying income tax in the year of the move.
- HSA (Health Savings Account)
- The only US account that is untaxed on contribution, on growth, and on qualified withdrawal.
- 403(b) & 457 Plans
- Workplace retirement plans for nonprofit and government employees, with different early-withdrawal rules.
- 529 Plan
- A state-sponsored account where growth used for qualified education expenses is untaxed.
- RMD (Required Minimum Distribution)
- The minimum amount that must be withdrawn each year from tax-deferred accounts, starting at 73.
- Tax-Advantaged Accounts
- Accounts carrying a deduction, deferral, or exemption, and how they differ from a taxable brokerage.
This content is educational and informational only. It is not financial, investment, or tax advice. Consult a qualified professional before making financial decisions.