by Jennifer Scheck Associate Financial Planner |
July 18, 2023
Determining which investment vehicles to use to save for short- and long-term purchases and retirement goals can be confusing. Associate Financial Planner Jennifer Scheck covers four types of accounts: non-qualified accounts, Traditional IRAs, Roth IRAs, and Employer Sponsored 401(k) plans on today’s Finance Moment Podcast.
Several factors impact which kind of account you may choose including your income level, account contribution limits, and tax implications or benefits.
Non-qualified accounts include checking and savings accounts, as well as investment accounts. Non-qualified accounts are funded with after-tax dollars and are helpful savings vehicles for short- and long-term goals. These accounts have no contribution limits or income restrictions.
Retirement savings accounts
For retirement savings, traditional IRAs, Roth IRAs, and Employer Sponsored 401(k) Plans offer tax benefits for funds intended for long-term investing and growth.