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 Like IRAs, the contributions you make to these plans are tax-deductible and cannot be withdrawn before retirement age without penalty.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. Asset Allocation Within Your Retirement Account Women often invest their retirement accounts too conservatively, so they yield lower returns and can be left shortchanged during retirement.