There are many retirement vehicles you can take advantage of besides a 401(k), such as: Many people also use other sources of income to supplement their retirement vehicle, such as:
There are many retirement vehicles you can take advantage of besides a 401(k), such as:
Many people also use other sources of income to supplement their retirement vehicle, such as:
Other Retirement Plans Besides 401(k) FAQs
Other common types of retirement plans available include Roth IRAs, Traditional IRAs, SEP IRAs, SIMPLE IRAs and 403(b)s.
It depends on the type of plan you choose. For example, a Roth IRA allows for contributions anytime in the year but with limits, while Traditional and SEP IRAs require annual contributions before the end of the tax year.
The contribution limits vary by plan. For example, the contribution limit for a Roth IRA is $6,000 annually, while the contribution limit for a SEP IRA is either 25% of an individual’s compensation or $57,000 (whichever is less).
Yes, depending on the type of plan and when you withdraw funds. Generally speaking, there will be taxes and penalties if you withdraw funds before age 59 ½.
No, retirement accounts cannot be used as collateral for loans. A creditor may have access to distributions from your retirement account if you default on a loan, but cannot seize the funds directly.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.