It's never too early to start. Learn the basics of retirement accounts.
401(k) / IRA / Roth IRA
Contribute after-tax dollars, investments grow tax-free, no taxes on qualified withdrawals.
Annual Limit (2024)
$7,000
$8,000 if age 50+
Income Limit
$161,000
Phase-out begins at $146,000
Tax Benefit
Tax-free growth
No taxes on qualified withdrawals
Withdrawal
Anytime
Earnings after 59½ + 5 years
Employer-sponsored, pre-tax contributions. Many employers match that's free money.
Annual Limit (2024)
$23,000
$30,500 if age 50+
Employer Match
3-6%
Always contribute to the match
Tax Benefit
Pre-tax
Reduces taxable income
Penalty
10%
Early withdrawal before 59½
| Feature | Traditional | Roth |
|---|---|---|
| Contributions | Pre-tax | After-tax |
| Growth | Tax-deferred | Tax-free |
| Withdrawals | Taxed as income | Tax-free |
| RMDs | Required at 73 | None |
| Best For | Higher bracket now | Lower bracket now |
See how consistent investing grows over time.
$200/month
30 years
7%
Estimated Balance
$243,994
Contributed: $72,000
Interest earned: $171,994
$200/mo for 30yr at 7%
Simulation only. Actual returns vary and are not guaranteed.
NOW.
Every year you delay costs you significantly. Starting at 25 instead of 35 with $200/month at 7% means significantly more by retirement. Small consistent investments build serious wealth.