I want to start saving for retirement. I've read an article that
mentioned IRAs, Roth IRAs, 40l(k)s, 403(b)s, and 457 government plans,
but didn't explain them. I would like to know what they are and see
some brief comparisons of the different plans, if possible.

"Individual retirement account (IRA) A tax-deferred retirement account
into which an investor may contribute a portion of his/her earned
income. Withdrawals before the investor reaches age 59 1/2 are
generally subject to a 10% penalty tax imposed by the federal
government. Types of IRAs include the traditional IRA and Roth IRA."
 
"Roth IRA A nondeductible IRA introduced by the Taxpayer Relief Act of
1997. Distributions from a Roth IRA are tax-free if they meet certain
requirements (income, time since the Roth IRA was established, age of
the Roth IRA owner, etc.)."
 
"40l(k) plan A defined contribution plan that allows employees to
contribute pretax dollars through salary deferral. Many plans offer a
variety of investment options?including stocks, bonds, short-term
reserves, mutual funds, and company stock?and employers often match a
percentage of employee contributions. 401(k) savings grow tax deferred
until retirement (or early withdrawal, in which case a penalty tax
applies)."
 
"403(b) plan Tax-sheltered retirement plans available to employees of
government agencies and nonprofit organizations such as hospitals and
universities. A 403(b) account is established by an individual and is
similar to an IRA. A 403(b)(7) plan is offered by the employer and
allows workers to contribute pretax dollars to selected investments."
 
"457 plan Allows state and local government and tax exempt
organizations to set up deferred compensation plans similar to a
401(k). This plan is not subject to ERISA. The funds belong to the
employer, subject to the claims of the employer's general creditors."

"NYLIM Retirement Services Glossary" New York Life Investment
Management LLC (2005)
http://www.nylim.com/retirement/0,2058,30_1009435,00.html

"Retirement Plan Changes Under the New Law" Athena Financial (2005)
http://www.athenalink.com/knowledgecenter/retirement_sub1.htm provides
contribution limits for 40l(k)s, 403(b)s, and 457 government plans.

"Traditional IRA and Roth IRA Contribution Limits" by Joshua Kennon,
About, Inc. (2005) http://beginnersinvest.about.com/cs/iras/a/iracontribution.htm
provides contribution limits for Traditional IRAs and Roth IRAs.

Search Terms: IRA, Roth IRA, 40l(k), 403(b), and 457 "contribution limits"

Sincerely,

Wonko

The descriptions of each plan are good.  A little more of a layman's
discussion or comparison of the plans and perhaps ways of deciding
what is best would really have helped me the most, but this was still
quite useful for me.  Thanks for the work -- about how long did it
take you to get all this?
Best, ~kafkaking