Retirement

An employer-sponsored retirement savings plan that lets you contribute a portion of your paycheck, often before taxes, to invest for retirement. Contributions grow tax-deferred until withdrawn in retirement, and many employers match part of what you put in, which is effectively free money toward your savings. In 2025 the employee contribution limit is $23,500, with an additional catch-up contribution allowed for those age 50 and older.

tax-advantaged retirement account you open and fund on your own, independent of an employer. Contributions may be tax-deductible depending on your income and whether you have a workplace plan, and your investments grow tax-deferred until you withdraw them in retirement, when they are taxed as ordinary income.

An employer-sponsored retirement account that blends features of a traditional 401(k) and a Roth IRA. You contribute after-tax dollars, so there’s no upfront tax break, but qualified withdrawals in retirement, including earnings, are completely tax-free. It uses the same high contribution limit as a traditional 401(k) with no income eligibility restrictions, and employer matching funds go into a separate pre-tax account.

A tax-advantaged account paired with a high-deductible health plan (HDHP) that lets you save for medical expenses. It offers a rare triple tax advantage: contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are also tax-free. Unlike a flexible spending account, the funds roll over year to year and stay with you, and after age 65 you can withdraw for any purpose (paying only income tax, like a traditional IRA).

The formula a target-date fund uses to gradually shift its asset allocation from aggressive to conservative as a target retirement year approaches. Early on it holds more stocks for growth, then steadily moves toward bonds and cash to reduce risk as the date nears. A key distinction is “to” versus “through”: a “to” glide path stops adjusting at the target year, while a “through” one keeps shifting for years into retirement.

An all-in-one investment fund designed around the year you expect to retire, which appears in its name (such as a “2055 Fund”). It automatically adjusts its mix of stocks, bonds, and other assets over time, holding more stocks early for growth and gradually shifting toward conservative assets as the target date nears. This hands-off, self-adjusting design makes it a common default option in employer retirement plans like 401(k)s.