12 retirement plans for a financially safe future

Individual retirement accounts can be used to save in addition to a workplace plan or a defined benefit plan. Or, if you don’t have access to both, you can use an IRA to fill in the gaps in your retirement efforts.

IRAs can be traditional, which means they are funded with pre-tax dollars, or Roth, which means they are funded with post-tax contributions. Both traditional and Roth IRAs are subject to the same annual contribution limits.

With a traditional IRA, contributions can be tax deductible and growth is tax deferred. You would pay normal income tax on retirement withdrawals, and withdrawals before the age of 59.5 may be subject to taxes and penalties. The required minimum distributions for these retirement savings accounts start at the age of 72.

There is no deduction for contributions with a Roth IRA, but qualified withdrawals are tax-free. You can also withdraw the money you contribute to a Roth IRA (not the income) at any time without incurring a tax penalty. There are no minimum payouts required from a Roth IRA, so you can continue to make new contributions as long as you work and have an income.

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