Retirement Planning Programs
Summary
A number of tax-deferred retirement plans are available to employees and self-employed persons. Thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001, contribution limits have been increased and catch-up provisions established. Some retirement savings programs (e.g., 401(k)s) allow an up-front tax deduction of the amount contributed, in addition to tax-deferred growth of the principal. Additional information is available through professional financial advisors, retirement-planning software and worksheets, websites, and employer educational programs. The sooner one starts to save, the longer compound interest will work its magic. Even small dollar amounts add up. A $20 weekly deposit earning a 10 percent average return over forty years will grow to $506,300.
BARBARA O’NEILL
See also ANNUITIES; ASSETS AND WEALTH; CONSUMER PRICE INDEX AND COLAs; ESTATE PLANNING; INDIVIDUAL RETIREMENT ACCOUNTS; RETIREMENT PLANNING; SAVINGS.
BIBLIOGRAPHY
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Additional topics
- Retirement Planning Programs - Getting Help: Formal Retirement Planning Education
- Other Free Encyclopedias
Medicine EncyclopediaAging Healthy - Part 4Retirement Planning Programs - Types Of Employer Retirement Programs, Plans For The Self-employed, Individual Retirement Accounts (iras)