Defined Contribution Plans, 401-YOU
401(k) plans and individual retirement accounts (IRAs) are examples of defined contribution plans. You decide how much to contribute, and those savings are invested to compound and (hopefully) capture market earnings. Learn about traditional, Roth, SEP, and SIMPLE plans, as well as 403(b), 457, and solo 401(k) plans.
Defined Contribution Plans Encyclopedia Articles By Title
401(k) rollovers: A step-by-step guide
A 401(k) rollover is the process of moving the funds from an existing employer-sponsored 401(k) to a new account.......
401(k) vesting schedules: Cliff, graded, and immediate ownership
One of the perks of working for an employer is the prospect of a 401(k), 403(b), or other workplace retirement......
Alternative investments for the 401(k) set
Editorâs note: This article first appeared in Money Matters, a newsletter from Britannica Money, on August 5, 2026.......
Are 401(k) fees affecting your retirement savings?
You know youâre supposed to save for retirement, and if your employer offers a 401(k) plan, building a nest egg......
Can you have multiple traditional and Roth IRAs? What if you also contribute to a 401(k)?
Tax-advantaged retirement accounts can help you build wealth for the future and improve your chances of a comfortable......
Catch-up contributions: Rules and limits for older savers
If you spent most of your working years juggling the expenses of home and family, your retirement accounts may......
Contribution limits: 401(k), IRA, HSA, and 529 plans
One of the more vexing aspects of tax-advantaged accounts is keeping track of contribution limits, catch-up contributions,......
Do gold and other precious metals have a place in your retirement portfolio?
Most people consider traditional investments for their retirement accountsâstocks, bonds, mutual funds, and exchange-traded......
Employee stock ownership plans (ESOPs): Owning a piece of your employer
An employee stock ownership plan (ESOP) is a qualified retirement plan thatâs primarily invested in employer stock.......
Goodbye saverâs credit, hello saverâs match
Editorâs note: This article first appeared in Money Matters, a newsletter from Britannica Money, on September 20,......
How much can you contribute to your 401(k), IRA, HSA, and 529 in 2024?
Each new year brings with it changes to tax laws, including those governing how much you can set aside for retirement,......
How to get around the 401(k) early withdrawal penalty
Technically, youâre not supposed to touch the money in your 401(k) until youâre at least 59 1/2âand for good reason.......
If your child is earning money, hereâs why they might want a Roth IRA
Among the things you worry about when it comes to your kids (sleep, schoolwork, staying out of trouble), retirement......
Is your employee 401(k) match enough to retire on?
You may have heard that itâs wise to contribute as much to your employer 401(k) plan as you need to collect the......
Job-hopping? Donât forget to roll: 4 options for rolling over your 401(k)
When you leave a jobâwhether by choice or notârolling over your old 401(k) may be the last thing on your mind.......
Members only: Alternative investments may be coming to your 401(k)
Everybody wants something exclusive. To find out whatâs beyond the velvet rope. What perks and privileges await......
My company 401(k) plan offers a Roth option. Should I use it?
Congratsâyouâre saving for retirement! Youâve already decided youâd like to invest in a Roth retirement plan so......
Profit-sharing plans: Retirement money, not a bonus
Profit-sharing plans are a common workplace retirement benefit, although the name can be misleading. These plans......
Pros and cons of taking out a 401(k) loan
Life happens, and sometimes you find yourself in a real cash crunch. If youâve already tapped your emergency funds,......
Retirement planning for the self-employed: How to choose between a solo 401(k) and SEP IRA
So youâve decided to ditch the corporate job and join the ranks of the self-employed. Itâs a bold step. Taking......
Retirement saving basics: 457 plan vs. 403(b)
The well-known 401(k) plan has become the default savings vehicle for many for-profit companies nationwide. But......
Roth conversions: What they are, how they work, pros and cons
Funding a Roth IRA is appealing chiefly because doing so can give you tax-free income in retirement. The trade-off,......
Roth IRA vs. traditional IRA: Which should you choose?
If youâre exploring ways to save for retirement, an individual retirement account (IRA) offers tax advantages that......
The rule of 55 and early 401(k) withdrawals
Have you ever wondered whether itâs possible to withdraw some of your 401(k) savings before you turn 59 1/2 without......
The saverâs credit: A tax break for retirement savers
Saving for retirement can feel difficult if your paycheck is already stretched thin. The saverâs credit can help.......
The spousal IRA: Helping your spouse save for retirement
It happens: At a certain pointâmaybe after the birth of a child, a layoff, or an illnessâone spouse might have......
Types of individual retirement accounts: Your guide to traditional, Roth, SEP, and SIMPLE plans
An individual retirement account (IRA) is a tax-advantaged way to boost your retirement savings. As an extra benefit,......
What are self-directed IRAs, and should I consider one?
A self-directed individual retirement account might sound like the ultimate empowerment tool for your nest egg,......
What is a 403(b) plan, and how does it differ from a 401(k)?
If youâre a public school teacher or work for a nonprofit organization, thereâs a good chance your workplace retirement......
What the SECURE 2.0 Act means for you and your retirement
Retirement plans arenât usually associated with âexciting developments,â but the updated SECURE Act introduced......
Whatâs the difference between a 401(k) and an IRA?
When considering tax-advantaged retirement plans, two majors come to mind: the individual retirement account (IRA)......
Your employerâs 401(k) plan is an easy way to save for retirement
Whether youâve just landed your first job or youâre just starting your retirement savings journey, contributing......
Your guide to small business retirement plans
Offering a retirement plan can help you attract and retain employees, and give you a way to build for your own......
Your retirement income: How required minimum distribution (RMD) rules work
A required minimum distribution (RMD) is the amount the government requires you to withdraw each year from certain......