| Studies have shown that Americans aren't
saving enough for retirement. These vehicles have a tax benefit to
encourage people to save.
You'll have more money to save if you can put it away
without taxes. That's what the government thinks, so they've created
IRAs, 401(k)s, education savings plans -- such as the 529 Plan and
the Coverdell savings account -- to help you make the most of your
savings.
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What you can expect to learn from this chapter: |
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IRAs |
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All IRAs are not alike.
We break down the differences between traditional and
Roth IRAs, SEP IRAs, SIMPLE IRA and self-directed IRAs. |
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Education-savings
plans |
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The federal Coverdell plan
and the state-sponsored 529 let you save for your child's
education and withdraw the money tax-free. |
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Penalty-free
IRA withdrawals |
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Here are seven instances
when you can withdraw from your IRA without a penalty,
even if you're not 59 1/2 years old. |
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401(k)s
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A 401(k) is an employer-sponsored
plan that lets the employee put in pretax dollars -- and
sometimes the employer matches the savings. |
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Chapter
5 quiz |
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We covered a number of savings
plans here. Did you learn all you need to know? |
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Chapter
5: Savings with tax breaks
