Understanding Safe Harbor 401(k) Plans [2026]
When an employer sets up a Safe Harbor 401(k) plan instead of a Traditional 401(k), they create a retirement benefit program with predetermined contribution rules. By adhering to the same rules for all employees, wherever their level is in an organization- entry-level to CEO- these plans can automatically pass nondiscrimination tests (NDTs) or sometimes don’t
Understanding Solo 401(k) Plans [2026]
As of 2023, 27.1 million US businesses were businesses with no employees.[1] Owners of businesses have options to save for retirement with Traditional and Roth IRAs. But these types of individual accounts have significantly lower contribution limits than employer sponsored retirement plans like 401(k)s, 403(b)s, 457 plans, or even SIMPLE IRAs or Simple 401(k),
Understanding Traditional 401(k) Plans [2026]
Traditional 401(k) plans are the most widely offered employer-sponsored retirement programs in the private sector. They allow employees to save for retirement directly from their paychecks while receiving valuable tax benefits. These plans form the backbone of workplace retirement savings in the U.S., with millions of workers using them to accumulate long-term, tax-advantaged wealth.
Understanding SIMPLE 401(k) Plans [2026]
A SIMPLE (Savings Incentive Match Plan for Employees) 401(k) plan combines aspects of SIMPLE IRAs and Traditional 401(k) plans. This allows small businesses that might not have the resources for a more extensive plan, like a Traditional 401(k), but want to offer more than what’s provided with a SIMPLE IRA.[1] Key aspects of SIMPLE
Understanding 403(b) Plans [2026]
403(b) plans are employer-sponsored retirement plans offered to education, nonprofit, and certain religious organizations..[1] Key aspects of 403(b) plans: These are pre-tax accounts, so you lessen your tax burden in the present but will have to pay taxes when you start using the money in retirement.[2] Traditional vs. Roth 403(b) Contributions: Many 403(b) plans
Understanding 457 Plans [2026]
457 plans are offered by state and local governments and some non-profits. These are pre-tax accounts; just like 401(k) and 403(b) plans, contributions come from your paycheck before income tax is withheld, but you will pay taxes when you withdraw the money in retirement. But in the meantime, the account is allowed to grow
Understanding SIMPLE IRAs [2026]
A SIMPLE (Savings Incentive Match Plan for Employees) IRA is a retirement plan for small businesses that might not have the resources for a more extensive plan like 401(k) but still want to offer retirement benefits to their employees. It is for businesses that have 100 or fewer employees.[1] Key aspects of SIMPLE
Understanding Thrift Savings Plans [2026]
Thrift Savings Plans are retirement plans offered to federal employees and uniformed service members. These plans mirror 401(k) programs provided to employees in the private sector. [1] Key aspects of Thrift Savings Plans (TSPs): Contributions are either pre- or post-tax. Participants can contribute to the plan with their tax needs in mind. With Traditional
Understanding Roth 403(b) Plans [2026]
Roth 403(b) plans are offered to employees in education, non-profit organizations, and certain religious organizations. These plans are a hybrid of traditional 403(b) plans and Roth IRAs, and they were introduced in 2001 to help offset some of the economic effects of a recession.[1] Key aspects of Roth 403(b) plans: Roth contributions are post-tax
Rolling Over Your Thrift Savings Plan (TSP) After Leaving Federal Service
When federal employees leave government service, whether through early retirement or voluntary separation, they have the option to roll over their Thrift Savings Plan (TSP) funds into another eligible retirement account. This process ensures continued tax-deferred growth and prevents unnecessary penalties. Here’s how it works: Timing of Rollover Upon Separation or Retirement After separating from