Unlike traditional IRAs, Roth IRAs don't have a mandatory withdrawal in retirement. This makes Roth IRAs attractive for passing tax-free wealth to heirs. Learn more about IRAs and compare the options with our Regular IRA or Roth IRA Tool . In a sense, these are personal pensions. Employers define how much they will contribute upfront but make no promises about what you will have when you retire.
Contributions are tax-deductible.
Investments grow tax-deferred. Employers make matching contributions. In essence, these retirement accounts allow you to set up a personal pension. Like IRAs, the contributions you make to these plans are tax-deductible and cannot be withdrawn before retirement age without penalty. Click here to learn more about the specific qualifications and rules of each kind of retirement account.