How to Easily Save for Retirement Without a 401k
When your employer offers a 401(k) account, saving for retirement becomes much easier. But what if you don't have a 401(k) account? Then you'll have to put a bit of work into setting up your retirement savings system -- but once it's in place, it'll be nearly as low-maintenance as the typical 401(k).
Without a 401(k) account, your next best option is to have an IRA. Traditional IRAs have the same kind of tax deferral benefits as 401(k)s, although claiming your tax bonus is slightly more complicated: instead of contributing money out of pre-tax dollars, as you can with a 401(k), you'll claim a deduction on your federal tax return for the money you contributed to your IRA. However, it works out to about the same thing as far as tax savings go. The vast majority of banks and brokerages now offer IRAs, so finding someone to set yours up won't be tricky. Setting up a new IRA is often as simple as going to the provider's website, filling out a few online forms, and clicking "Submit."
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Source: Fool.com
