Retirement Accounts

Retirement accounts are savings accounts that the tax code treats in special ways to encourage people to save for later life. They include employer plans, individual retirement accounts, and plans for government and military workers. Congress writes the rules, the Internal Revenue Service enforces them, and the Department of Labor oversees many employer plans.

People usually bring questions about how the main account types differ, how traditional and Roth treatment change when taxes are paid, and how much can go in each year. They also ask what happens when money is taken out early, how employer matching works, and how plans for federal employees and service members compare with private ones.