2023 Taxes Cheat Sheet - Flipbook - Page 5
2018 UPDATED EDITION:
Retirement Taxes Cheat Sheet
Types of Employer Sponsored Retirement Plans
401(k)
The most popular “Defined Contribution” retirement plan that allows employees to
contribute to an individual account and employers to offer additional matching funds.
Plans can offer Traditional (pre-tax) or Roth (post-tax) contribution options.
For more info: https://www.irs.gov/retirement-plans/401k-plans
403(b)
Retirement plan similar to a 401(k) that is offered by public schools and certain 501(c)(3)
tax-exempt organizations. Employees contribute to individual accounts and employers
can also contribute to employees' accounts by offering matching funds.
For more info: https://www.irs.gov/retirement-plans/irc-403b-tax-sheltered-annuity-plans
Thrift Savings Plan (TSP)
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal
employees and members of the uniformed services. It offers the same types of savings
and tax benefits that many private corporations offer their employees under 401(k) plans.
For more info: https://www.tsp.gov/index.html
Defined Benefit Plans (Pension)
Defined benefit plans (457) provide a fixed, pre-established benefit for employees at
retirement. Employees often value the fixed benefit provided by this type of plan. On the
employer side, businesses can generally contribute (and therefore deduct) more each
year than in defined contribution plans.
For more info: https://www.irs.gov/retirement-plans/defined-benefit-plan
SIMPLE or SEP IRA
A SIMPLE or SEP plan allows employers to contribute to traditional IRAs set up for
employees.
For more info: https://www.irs.gov/Retirement-Plans/Plan-Sponsor/SIMPLE-IRA-Plan -orhttps://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep
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