What is a 403b investment account? A 403b account is similar to a 401k retirement investing account. A 403b investment account (also called a tax-sheltered annuity or TSA plan) is a retirement plan offered by public schools and certain 501(c)(3) tax-exempt organizations. Employees save for retirement by contributing to individual accounts. They can also contribute…
What are taxable investment accounts? No matter who you open an investment account with, most typically offer the regular taxable investment account. Unlike tax-deferred investment accounts, like traditional IRAs, 401ks, Roth IRAs, and etc., taxable investment accounts count as extra income every year when you sell for a gain or are paid dividends from your…
What is a SEP-IRA? Most people know about both traditional and Roth IRAs or individual retirement accounts. Both types of accounts are a type of retirement account that you can open through an investment brokerage and manage all on your own. The traditional IRA is a retirement account that is similar to the traditional 401k…
What are traditional 401ks? There are two different types of 401ks. There is the traditional and the Roth 401k. They are both classified as tax-deferred accounts. The money you invest in traditional 401ks is typically money that comes out of your regular paycheck before you pay the usual federal, state, and FICA taxes. This means…
What are traditional IRAs? Traditional IRAs are individual retirement accounts offered by investment brokerages in the US. The money you invest in traditional IRAs is typically money that you contribute with after-tax money, and then you have the option to deduct these contributions from your total taxes for the year if your itemized deductions are…
What are FSAs? FSA accounts are a type of investment are used to help pay for healthcare-based expenses, similar to HSAs. Unlike HSAs, they are employer-sponsored plans meaning you can’t open one on your own. In that way, they are more comparable to 401ks, which are also employer-sponsored accounts. The equivalent to the IRA would…
What is an HSA? HSAs are tax-deferred accounts that are meant to be used specifically for health-related expenses from co-pays to surgeries and more. It’s available to taxpayers in the United States who are enrolled in a high-deductible health plan. Unfortunately, there are some restrictions on who would be eligible for HSAs. Those not eligible…
What are 529 College Savings Plans? There are two types of 529 plans. There are 529 college savings plans and 529 prepaid plans. Typically, 529 plans are sponsored by individual states. You can, but do not even need to use your own state’s 529 plans. These plans also do not have set contribution limits by…
