With so many acronyms and numbers thrown around in the retirement world, it can be complicated to understand how it all works and what's best for you. Two popular retirement accounts that you've probably come across are the Roth IRA (individual retirement account) and 401(k). Although both accounts will help you beef up your retirement savings, their rules and limits are completely different. Below, we've outlined how they both work so you can make progress toward your retirement goals before the year ends.

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A 401(k) is an employer-sponsored retirement plan where you can contribute a portion of your paycheck before taxes are taken out. Here's how it works:

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Source Fool.com