401(k)
Employer-sponsored plan with pre-tax contributions. Offers Roth option for after-tax contributions.
Risk Score: 4.5
Suitable For: Employees looking for employer-sponsored retirement savings with high contribution limits
Contribution Limits: For 2023, $20,500 under 50; $27,000 for 50+.
403(b)
Similar to 401(k) but for employees of tax-exempt organizations.
Risk Score: 4
Suitable For: Employees of public schools, non-profit organizations, and certain ministers
Contribution Limits: For 2023, $20,500 under 50; $27,000 for 50+.
457(b)
Available to state and local government employees, with pre-tax contributions.
Risk Score: 3.5
Suitable For: State and local government employees, as well as employees of certain tax-exempt organizations
Contribution Limits: For 2023, $20,500. Special catch-up contributions allowed under certain conditions.
Traditional IRA
Individual retirement account with potential tax-deductible contributions and taxable withdrawals.
Risk Score: 3
Suitable For: Individuals looking for a tax-advantaged retirement savings option with the flexibility of self-direction
Contribution Limits: For 2023, $6,000 under 50; $7,000 for 50+.
Roth IRA
Funded with after-tax money, offering tax-free growth and withdrawals.
Risk Score: 2.5
Suitable For: Individuals anticipating higher tax rates in retirement and looking for tax-free income
Contribution Limits: For 2023, $6,000 under 50; $7,000 for 50+, with income limitations.
SEP IRA
For self-employed individuals and small business owners, allowing employer contributions to an employee's retirement account.
Risk Score: 3
Suitable For: Self-employed individuals and small business owners seeking a simple, tax-advantaged way to save for retirement
Contribution Limits: Lesser of 25% of compensation or $61,000 for 2023.
SIMPLE IRA
For small businesses, allowing both employer and employee contributions.
Risk Score: 3
Suitable For: Small businesses with 100 or fewer employees looking for an easy-to-administer retirement plan
Contribution Limits: For 2023, $14,000 under 50; $17,000 for 50+.
Thrift Savings Plan (TSP)
Federal government's retirement savings plan.
Risk Score: 2
Suitable For: Federal employees and members of the uniformed services seeking a low-cost, government-sponsored retirement savings plan
Contribution Limits: For 2023, $20,500 under 50; $27,000 for 50+.
Roth 401(k)
Employer-sponsored, funded with after-tax dollars, with tax-free withdrawals.
Risk Score: 3
Suitable For: Employees looking for employer-sponsored retirement savings with the benefit of tax-free withdrawals in retirement
Contribution Limits: For 2023, $20,500 under 50; $27,000 for 50+.
Inherited IRA
For beneficiaries of IRAs or retirement plans, with specific distribution rules.
Risk Score: 3
Suitable For: Beneficiaries of IRA or retirement plan accounts who want to maintain the account's tax-advantaged status while taking required distributions
Contribution Limits: Not applicable for contributions, only inherited balances.
Education IRA
For educational expenses, funded with after-tax contributions, with tax-free distributions for qualified education expenses.
Risk Score: 3
Suitable For: Individuals looking to save for educational expenses with tax-free growth and distributions
Contribution Limits: Maximum of $2,000 per year, per beneficiary, subject to income limits.
Spousal IRA
Allows a non-working spouse to contribute to an IRA based on the working spouse's income.
Risk Score: 3
Suitable For: Non-working spouses who want to contribute to their own IRA, leveraging the income of their working spouse
Contribution Limits: Same as Traditional or Roth IRA: $6,000 under 50; $7,000 for 50+ for 2023.
Self-Directed IRA
Offers a broader range of investment options, including real estate and precious metals.
Risk Score: 4
Suitable For: Investors looking for a broader range of investment options beyond stocks, bonds, and mutual funds
Contribution Limits: Same as Traditional or Roth IRA: $6,000 under 50; $7,000 for 50+ for 2023.
Gold IRA
A type of Self-Directed IRA that allows investment in physical precious metals.
Risk Score: 2
Suitable For: Investors looking to diversify their retirement portfolio with physical gold or other precious metals
Contribution Limits: Subject to the same limits as Traditional or Roth IRAs: $6,000 under 50; $7,000 for 50+ for 2023.
Roth Conversion
The process of converting a Traditional IRA into a Roth IRA, involving the payment of taxes on the pre-tax contributions and earnings converted. This allows for future tax-free growth and withdrawals under a Roth IRA.
Risk Score: 0
Suitable For: Individuals willing to pay taxes now for tax-free withdrawals in retirement, potentially beneficial if expecting higher tax rates in the future
Contribution Limits: No direct contributions. Limits apply to the originating account before conversion.