Before tax retirement savings plan is nothing but a retirement plan. Any money you put away from your income for retirement is a pre tax plan. Even the usual 401k plan is a retirement plan. Most of the retirement plans like pension schemes are pre taxed so when you get the whole money, you do not need to pay tax or capital gains.
The biggest benefit of the 401 k plan is that the money contributed to the plan is made on a pre tax basis. When the person retires, they can take a wholesome amount home without any deductions. The money that you are saving for retirement also earns an interest additionally. In case you happen to draw this money early, then tax and penalty for early withdrawal are applicable. However, if you draw this money after retirement, you will not pay any tax or penalty.
Some employers contribute supplementary money in the form of retirement benefit for their employers. This is called an employer match. This amount could be equal in contribution as to the employees or a certain percentage of the amount contributed by the employee on a monthly basis. Also, in such a case the company will have a pre-condition that the employee will need to work for a certain period of time in order to be eligible for that kind of benefit. There are several investment choices that an employee can make like the 410 k itself has a range of options to choose from. Money from your pension account can be withdrawn on conditions of disability, when the employment is terminated, retirement, death and also reaching 60 years.
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