Deciding among different retirement accounts

Deciding among different retirement accounts PL-380 Determining how to allocate money in retirement accounts Moving your retirement account to a new firmis chapter helps you make sense of the various retirement accountptions and decide how to R9700DX invest money you currently hold inside - orplan to contribute to - retirement accounts. (To see how much money youshould be saving toward retirement, see Chapter 4.)Retirement accounts offer numerous benefits. In most cases, your contri-butions to retirement accounts are tax-deductible. The contribution limitsincreased significantly in the earlier part of the first decade of the 2000s. Andwhen you place your moneyR-818 inside the retirement account, it compoundswithout taxation until you withdraw it. (Some accounts, such as the newerRoth IRA, even allow for tax-free withdrawal of investment earnings.) If youradjusted gross income is below $55,500 per year for married taxpayers filingjointly ($27,750 for single taxpayers), you may be eligible for a new, specialtax credit for making retirement account contributions - please refer toTable 7-2 in Chapter 7. The following sections detail the types of retirementaccounts and explain how to determine whether you're eligible and how tomake the best use of them. -1tor-)er-sponsorecrt ptcrnsYour employer sets up this type of R-9702 retirement plan and usually provides alimited selection of investment options. All you have to do is contribute andchoose how to spread your money among the menu of investment choices.