401(k) or 403(b) through your employer

For most people, this is the easiest and best place to start investing for retirement. The money is withheld through payroll deduction. If you leave your job, you can roll the account over into a new employer’s 401(k) or your own IRA. Usually, a 401(k) is offered by a for-profit company, while teachers and other employees of nonprofits may be offered a 403(b) instead.

Solo 401(k)

A sole proprietor can set up an individual 401(k) and make contributions as both the employee, and the employer.

SEP IRA

SEP stands for “simplified employee pension,” and this kind of account is used primarily by the self-employed or small business owners. These accounts are easier to set up than a solo 401(k). If the business has employees, the employer must contribute for all who meet certain requirements.

Simple IRA

This plan allows small employers (those with fewer than 100 employees) to set up IRAs with less paperwork. Employers must either match employee contributions, or make unmatched contributions.

IRA

Anyone can contribute to an IRA. The money grows tax-deferred until withdrawn. You can contribute to both an IRA and a 401(k), but if you’re covered by a retirement plan at work, you can’t deduct your IRA contributions from your taxable income.

Roth IRA

With a Roth IRA, you are contributing after-tax dollars. You get no tax deduction for your contribution, but the money you earn grows tax-deferred and you pay no tax on withdrawals after you reach 59 1/2. Unlike regular IRAs, there is no mandatory withdrawal at age 70; and you can withdraw the amount you contributed (but not your earnings) at any time, with no penalty and no taxes due.

Health savings account

Those with certain high-deductible health insurance plans can save money earmarked for medical expenses, tax-deferred in a health savings account (HSA).