Are You Taking Advantage of This Surprising Retirement Savings Tool?
When it comes to socking money away for retirement, savers have different choices. IRAs are a popular retirement savings option because they're open to anyone with earned income, whereas with a 401(k), you need to have access to a plan through your employer or otherwise qualify for a solo 401(k) due to self-employment. But 401(k)s are also commonly used to grow retirement wealth, especially since many come with employer matching programs that make it easier to save.
But what if your finances are such that you're able to max out your IRA or 401(k) plan for the year and still have money left over to earmark for retirement? You could, in that case, invest in a traditional brokerage account, but then you won't get any tax breaks. In fact, taking gains in a regular brokerage account could actually increase your tax burden.
Thankfully, there's another tax-advantaged savings tool out there that isn't specific to retirement, but can double as a retirement plan nonetheless. And if you qualify for it, it's a great place to put your money.
Source Fool.com
