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But what pop in of account should you use for your retirement savings?
Many different options can help you prepare for retirement.
However, not all retirement accounts will be the best fit for every person.
Keep reading to explore five different accounts that can help you prepare for a wealthy retirement.
Remember, its up to you to choose the ones thatbest fit your needs, situation and goals.
Some employers will match your pre-tax 401(k) contributions up to acertain amount or percentageof your paycheck.
If you arent sure if your company has a match, contact your employers HR department.
Investment earnings from a traditional IRA are tax-deferred.
The maximum contribution to a traditional IRA for 2024 is $7,000.
People 50 or older are able to contribute up to $8,000.
Roth IRA
A Roth IRA is another great retirement savings account option for those who qualify.
Your contributions will not be tax-deductible, but you will be able to withdraw the money in retirement tax-free.
Plus, you wont be required to take minimum distributions each year.
If your income exceeds these amounts, youll need to invest in a traditional IRA instead.
The contribution limits are the same for a Roth IRA as they are for a Traditional IRA.
Plus, some people, will be in a higher tax bracket when they retire.
Spousal IRA
A spousal IRA is not technically a different bang out of retirement account.
The working spouses income must equal or exceed thetotal IRA contributionsmade on behalf of both spouses to be eligible.
With a spousal IRA, each IRA is set up in the name of the individual.
Spousal IRAs can be Roth IRAs or traditional IRAs.
Non-Qualified Account
Most people use retirement-specific accounts when saving for retirement.
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