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Retirement Savings Plans

You can save for retirement using several tax-favored savings plans. Some savings plans feature tax-deductible contributions and tax-deferral on the earnings and growth. Other savings plans provide for tax-deferral only. While Roth-style savings plans provide the potential for tax-free income upon distribution.

Retirement Savings Plans
You can save for retirement using a number of tax-deferred or tax-free retirement plans.

401(k) Contribution Limits
Individuals can contribute up to $17,500 as an elective deferral to their employer's 401(k) plan. Additionally, individuals age 50 or older can contribute an additional catch-up contribution of $5,500. This article discusses 401(k) by year.

403(b) Contribution Limits
Individuals can contribute up to $17,500 for 2013 as an elective deferral to their employer's 403(b) retirement savings plan. Additionally, if you are age 50 or older, you can contribute an additional catch-up contribution of $5,500. This article discusses annual contribution limits to 403(b) savings plans.

457 Contribution Limits
Contributions to a section 457 deferred compensation plan is limited to $17,500 for the year 2013. Participants age 50 or older may save up to an additional $5,550 as a catch-up contribution.

Form 5498
Banks and other financial institutions send out Form 5498 to report information about individual retirement accounts, health savings accounts and other types of tax-preferred savings accounts. This tax form is for information reporting purposes only, and most of the information on Form 5498 is probably already reported on your tax return. Tips...

Individual Retirement Accounts
An individual retirement account is a savings plan offering tax benefits. Some types of IRAs provide a tax deduction, reducing your current income. Other IRAs provide no deduction, but offer tax-free distributions. Learn about the different types of IRAs available.

Individual Retirement Accounts for Americans Working Abroad
Americans working in foreign countries may able to set money aside in a IRA. However there are some technical rules that call for close scrutiny to ensure that your savings achieve the maximum tax savings. In particular, the foreign earned income exclusion coordinates with the rules for IRA eligibility, and this creates a very narrow range of options for Americans living and working abroad.

Losses in an IRA
Investment losses inside an individual retirement account could produce a tax deduction, if you're willing to cash out your IRAs. Here's an overview of how IRA losses are handled for tax purposes, and some tips for making of the most of an IRA loss.

Roth IRA Conversions
If you have been saving for retirement in a traditional IRA, you are eligible to convert some or all of your traditional IRA funds into a Roth IRA. Beginning in the year 2010, all restrictions on converting to a Roth IRA have been removed. Prior to 2010, individuals were not allowed to convert to a Roth IRA if their income exceeded 100,000. Is converting to a Roth a good idea? That depends on sev…

Roth IRAs
Roth individual retirement accounts provide potentially tax-free savings and distributions. While taxpayers cannot take a deduction for contributing to a Roth IRA, distributions from a Roth IRA are completely tax-free if certain conditions are met. Up to $5,500 can contributed to a Roth IRA for 2013.

Tax Penalty for Early Distribution of Retirement Funds
If you withdraw money from a traditional individual retirement account (IRA), 401(k), 403(b), or other qualified retirement plan before you turn age 59 1/2, you may be subject to an early distribution penalty of 10%. There are exceptions. Here's what you need to know about the 10% early distribution penalty.

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