The 401(k) plan is one of the most successful plans, chalked out for working professionals in the country. A specific amount of money is deducted from the employee’s salary every month, which contributes to the retirement savings. Almost all the companies provide a 401(k) plan to their employees. However, there are still some that fail to offer any kind of retirement plan to their employees. In such cases, it is not difficult to find alternatives on your own and start saving for your retirement.

Traditional IRA
A traditional Individual Retirement Account is an alternative to the popular 401(k) plans. You can contribute an amount from your salary to the traditional IRA and gain tax benefits by doing so. The tax is not deducted from the amount unless the amount is withdrawn from the account after retirement.

SEP IRA
The Simplified Employee Pension Individual Retirement Account is adopted by businesses to provide retirement plan options to their employees. It is especially useful for freelancers who do not have any company title to their name and have to individually opt for a retirement plan.

Investment Account
This type of an account allows people to deposit a certain amount of money in the account, which is not only taxable but is also considered as a security. It yields long-term benefits as it is a long-term investment. A specific amount is received by the employees after their retirement in either a series of installments or sum.

Health savings account
Everybody now has a medical insurance. It is possible for employees to use the money from their insurance policy for their retirement. If after 65 years of age, the insurance remains to be untouched, you can request for the amount to be converted and given to you in your account

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Tax refund
The money that is refunded to you after you are done paying off the tax can be put in a savings account instead of being spent as a bonus. You can save in small places for bigger returns in the future after your retirement.

Taxable brokerage account
In such type of an account, you partner up with a stock brokerage firm by depositing a certain amount into the account. This amount can be used for buying individual stocks and various other things. All the amount deposited is taxable. There is no limit to the amount that can be deposited in a taxable brokerage account and, therefore, no restrictions on accessing the money.

In fact, you can open multiple brokerage accounts and invest accordingly. Since all income is taxable, you do not have to worry about paying extra tax. The holder of the account has to pay a certain commission to the brokerage firm for buying and selling the stocks. So, now there are several ways in which you can prepare for your future retirement.

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