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.What you can expect to learn from this chapter:IRAs All IRAs are not alike. We break down the differences between traditional and Roth IRAs, SEP IRAs, SIMPLE IRA and self-directed IRAs.Education-savings plans The federal Coverdell plan and the state-sponsored 529 let you save for your child's education and withdraw the money tax-free.Penalty-free IRA withdrawals Here are seven instances when you can withdraw from your IRA without a penalty, even if you're not 59 1/2 years old.401(k)s A 401(k) is an employer-sponsored plan that lets the employee put in pretax dollars -- and sometimes the employer matches the savings.Chapter 5 quiz We covered a number of savings plans here. Did you learn all you need to know? advertisementRelated Links:Deducting theft lossesRecovering FICA paymentsFSAs cut taxesRelated Articles:Expenses cut tax billReport investment incomeEstimated quarterly taxes
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.