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Part I - Distinguishing features of retirement accounts In the chart below, the first column contains a statement. Mark an X in each type of
Part I - Distinguishing features of retirement accounts In the chart below, the first column contains a statement. Mark an X in each type of retirement account for which the statement is true. If the statement doesn't apply to that type of retirement account, leave the box empty.
Factor Pen
| Factor | Pension | Traditional 401(k) | Traditional IRA | Roth IRA |
| Eligibility | ||||
| Nothing about the account changes, even if you switch jobs | ||||
| Eligibility may be affected by how long you work with a given company | ||||
| All employers offer this type of account | ||||
| Taxes | ||||
| The money you put into this retirement account has already had taxes taken out of it | ||||
| You pay taxes when you eventually take the money out | ||||
| Contributions | ||||
| Your company may contribute funds toward your retirement | ||||
| Any contributions you make come directly from your paycheck | ||||
| You make contributions from your bank account | ||||
| Factor | Pension | Traditional 401(k) | Traditional IRA | Roth IRA |
| Investment Options | ||||
| Your employer has some say in how the money is invested | ||||
| You have some choice in how your contributions are invested | ||||
| Receiving Your Benefits | ||||
| Your total retirement benefit will depend on the risk level of the investments you chose | ||||
| Youre promised a fixed benefit each month, which may increase with inflation |
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