(Kristen) Welcome to Money Matters at 757 with Justin Chastain. And, Justin, there are a lot of options for retirement savings out there, but what are these “qualified” retirement plans?
(Justin) So, qualified retirement plans mean that they are qualified for tax benefits. These are going to be things like a 401k plan at your work, or, if you work for a nonprofit, they’ll call it a 403B plan.
(Kristen) Okay, so that is the question because there are so many letters and acronyms out there, so what is the difference? 401k, 403b, IRA?
(Justin) Yeah, so a 401k plan is going to be offered for profit institutions. A 403b is going to be offered for nonprofits.
And an IRA or a Roth IRA, even though a Roth IRA is a non-qualified plan, is going to be something you invest in outside of your work environment. So, that’s going to be something you do on an individual level.
(Kristen) Perfect, and always get some help in those areas, right?
(Justin) Always reach out to a trusted advisor.