When you think about retirement plans, one thing that comes to mind is the 401(k), which is very popular in the private sector. But did you know that there are other accounts? You can choose one retirement plan in Idaho among the following.
Traditional/ Roth IRA
What are IRAs, you may ask. These are IRS retirement plans where an individual can set up a personal account even without the employer. Just like 401(k)s, IRAs can also be Roth or traditional, and the best part is that contributions to that account can be lower.
403(b)
This is another retirement plan that is usually offered by charitable institutions, and some schools and churches. Here, the contribution limits are the same as those of conventional 401(k)s and come in Roth and traditional forms.
457(b)
When it comes to this retirement plan, the contribution limits are practically the same as 401(k)s but the difference is that they are usually offered by local government bodies or particular states. However, they are also in Roth or traditional accounts.
SEP IRA
SEP (Simplified Employee Pension) IRA is ideal for business owners who want to set aside funds for retirement either for themselves or for their staff. The size of the business doesn’t matter, but in most cases, it is ideal for businesses where there are fewer employees because the point is to save equally for each staff.
Solo 401(k)
This is a form of 401(k) for a single participant. How does it work? This plan can only be used by the company when the owner and maybe their spouse are the sole employees. It usually works like a typical 401(k) in terms of the contribution limits, but there are some special rules for the contributions by the employer.
