1. PERSONAL FINANCE Chapter 3

2. Wealth Building  Baby step 4  Tax-favored

3. Pretax Retirement Plans  IRA  401K  403B

4. IRA  You must have an earned income to be eligible.  Max of $5,000 a year

5. 401K  It is self-funded and contributions are often matched by the company  Has replaced the old pension plan.

6. 403B  Is found in non-profit organizations such as churches, hospitals and schools.  It is like a 401K, except there usually no matching of contributions.

7. After Tax Retirement Plans  Roth IRA  Grows tax free  Good if you will be in a high tax bracket at retirement  No taxes when you cash it out  You must qualify to use a Roth IRA

8.  Why would we want the option of a pretax and after-tax retirement plan?