J.K. Lasser's 1001 Deductions and Tax Breaks 2022, 2nd Edition

CHAPTER 5Retirement Savings

1. Traditional IRAs
2. Roth IRAs
3. IRA Rollovers
4. 401(k) and Similar Plans
5. Self‐Employed Retirement Plans
6. SEPs
7. SIMPLEs
8. Retirement Saver's Credit
9. Custodial/Trustee Fees
10. Employer‐Paid Retirement Planning Advice
11. Charitable Transfers of IRA Distributions
12. Qualified Longevity Annuity Contracts
13. Hardship Distributions from Retirement Plans
14. Special Rules for COVID‐19 and Disasters

Your Social Security benefits alone, or even retirement benefits derived from employer contributions to retirement plans on your behalf, won't provide you with the financial security you want for your retirement years. You need to save so that you'll have the assets to generate income after you stop working. Fortunately, the tax law provides important incentives to encourage your personal savings in special retirement accounts. You may be able to write off your savings (contributions) as well as qualify for special treatment when you start drawing from these savings. Retirement plans in 2021 continue to feel the impact of changes made by the SECURE Act, the CARES Act in response to COVID‐19, and other legislation.

There are many different types of retirement plans that you may be able to use to save for your future. Contributions are subject to limits; if your income is high enough, it may bar you from contributing to some plans but not to others.

This chapter explains the tax breaks you may be entitled to when you save for retirement using tax‐advantaged ways. If you are an employer, you ...