 TITLE: How to Plan for Retirement CONTENT: Choose Where to Store Your Funds\n--------------------------------\nAs we mentioned before, a 401(k) and an IRA are two options for your retirement savings. In fact, they're the two most common types of retirement accounts. Let's dig a little deeper into the 401(k) and IRA.\nSponsored by your employer, a 401(k)—or 403(b) for some nonprofit and other employers—lets you put some of your pretax income in a retirement account. The amount you select is deducted automatically from your paycheck before it hits your bank account. Investment options for a 401(k) include mutual funds and exchange-traded funds (ETFs). In some instances, your employer will match your contributions up to a certain amount, often as a percentage of your salary (like 3%).\nFinancial experts typically recommend earmarking at least 10% to 15% of your pretax income for your 401(k). But if you're 40 or over, you might want to aim for 20%.\nAs opposed to a 401(k), an IRA is a retirement account that you open on your own through a bank, credit union, investment firm or a mutual fund company. Two common kinds of IRAs are a traditional IRA and a Roth IRA:\n*   A **traditional IRA** enables you to contribute pre- or after-tax dollars. Your money grows tax-deferred, and withdrawals are taxed after age 59½.\n*   A **Roth IRA** allows you to contribute after-tax dollars. Your money grows tax-free, and you usually can withdraw money after age 59½ without paying taxes or penalties. END