Retirement Planning Beyond 401(k) Plans: Exploring Supplemental Savings

Retirement Planning Beyond 401(k) Plans: Exploring Supplemental Savings

Having a solid retirement plan is not only beneficial, it’s essential. With increased living and medical expenses, it’s important to plan ahead to secure a stable retirement that allows you to live comfortably and accomplish your goals.

While many employers offer 401(k) plans and matching incentives, nearly one-third of private workers don’t have access to work-sponsored plans, according to Investopedia. That’s why it is important to explore other retirement savings options that will help you secure a financially free future. While not all retirement plans are made equal, there are solutions for every type of income and future, and Slavic401k provides tools like financial calculators to help you understand your snapshot, goals, and retirement path. View them here.

To learn about retirement options outside of an employer-sponsored 401(k) plan, read below.

Individual Retirement Accounts

Individual Retirement Accounts, often referred to as IRAs, are a great solution for individual retirement planning. These accounts can be opened and managed easily by the investor, and many financial institutions offer online activation, meaning you can open an account anytime, anywhere. While the IRS determines maximum contributions on an annual basis, these accounts are a great supplemental savings tactic for your future.

Selecting the type of IRA that works for you is equally as important as saving for the future. There are three main types of IRAs to consider: Traditional, Roth, and SEP. Learn about each below.

Traditional IRA

In 2023, the maximum contribution limit for a Traditional IRA is $6,500 for participants under 50 years old, and $7,500 for those over 50, making it a good option to store extra funds and save for the future.

Traditional IRAs allow participants to make pre-tax contributions that may be fully or partially deductible on a tax return, depending on filing status. It’s important to note that as a retirement plan, this account will be subjected to withdrawal rules and regulations, and early withdrawals (before the age of 59½ ) will be penalized with fees.

Roth IRA

A Roth IRA is similar in structure to a Traditional IRA, but is a tax-advantaged account, meaning contributions grow tax-free through retirement. Learn more about the tax benefits from Investopedia. While these accounts also have the same contribution limits as a Traditional IRA, the benefits are the same in terms of saving extra money for your future nest egg.

While the IRS still determines rules and regulations for these accounts, such as early withdrawal penalties (unless you qualify for an exemption), there are some added benefits, like having no required minimum distribution. Exemptions include using the funds to purchase a home, birth or adopt a child, and more.  You can learn more about exceptions to the penalty and fee structure on Nerdwallet.


Also known as a Simplified Employee Pension plan, these accounts also operate similarly to a Traditional IRA in the way of contributions and tax deferrals but are better made for self-employed individuals.

Although these are individually managed by the participant, like an IRA, they have different contribution limits, totaling $66,000 or 25% of the participant’s salary in 2023, according to NerdWallet.

Health Savings Account (HSA)

Retirement accounts are not one-size-fits-all, and that’s especially true with an HSA. While these tax-deductible accounts are for medical expenses like health, dental, and vision care, they are an overlooked account for retirement savings.

It’s likely that your medical expenses will continue to increase as you age, so by opening an HSA, you will have your medical costs covered in your retired years.

In 2023, the maximum contribution limit is $3,850 for individuals, $7,750 for families, and an extra $1,000 for eligible catch-up contributions for participants aged 55 and older. The funds contributed to an HSA do not expire, and will continue to roll over year after year. By maximizing these accounts today, you are covering health expenses in your future. Learn more about HSAs here.

Real Estate

A unique way to save for retirement is through investment real estate. This tactic includes purchasing property outright and renting it, building on it for rent or resale, or reselling the property altogether.

If you’re not purchasing property yourself, you may choose to invest in it via an IRA or brokerage account, which gives you access to real estate investment options. If you’re not sure where to start, contact your financial advisor to discuss your options.

Brokerage Account

Another option outside of a 401(k) is a brokerage account. These accounts are managed by licensed firms and involve an investor depositing funds into their account which the firm manages. The firm will make orders for investments like stocks, bonds, and other investments on their behalf and monitor the account for profits and losses.

All the assets acquired in the account are owned by the investor and reported on an individual’s taxes each year.

While having a firm manage your account may sound easy and convenient, there are fees involved, so make sure you understand the structure of costs associated with your account and plan. Ensure that your potential earnings are not overshadowed by management fees and other costs you may incur. Learn more about brokerage accounts through Investopedia.

Saving for retirement expands beyond an employer-sponsored 401(k), and to secure a financially stable retirement, it’s a good idea to explore supplemental savings options. The more you can do today for your future, the better it will be.



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