401K and IRA contributions significantly impact retirement savings. They are both types of retirement accounts that allow you to contribute pre-tax dollars, which can grow tax-deferred until retirement. This means that the money you put into these accounts is not taxed until you withdraw it in retirement, allowing your savings to grow more quickly. Additionally, many employers offer matching contributions to 401K plans, which can further boost your retirement savings. It's important to note that there are annual contribution limits for these accounts, and withdrawals before retirement age can result in penalties.
Uncertain about your financial security in retirement? To secure peace of mind in your golden years,...
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