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Retirement Savings Plans

Learn About 401(k) Plans

401(k), 403(b), SIMPLE IRA, plans are some of the most popular types of employer-sponsored retirement plans. While they all have different rules associated with them, they are all designed to help accomplish a similar goal of tax deferred retirement savings. When you have one of these investment vehicles available to you, you choose to either receive cash payments (wages) from your employer immediately, or put off receiving a portion of that income as part of your retirement plan. The amount you defer is called an “elective deferral” or “pretax contribution” and isn’t’ currently included in your income – it’s made with pretax dollars.

You don’t pay current income taxes when you make pretax 401(k) contributions, but your contributions and investment earnings are completely taxable when you receive a distribution from the plan.

Use our Retirement Savings calculator to figure out your specific needs! 

Retirement Investment Plan FAQs


This is a great question and one that would need to be examined for each individual participant. There isn’t a blanket answer because each person or household is different than the rest. You may have a co-worker that performs the same job and is compensated at the same level as you are but their household dynamic (income, tax deductions) is different thus making the recommendation of Traditional vs. Roth different.