401(k)s and IRAs: Grow your money, shrink your taxes

How to invest for retirement so that you get rich - and the IRS doesn't.

Go for an IRA
Grow It
Go for an IRA
After you've fully funded your 401(k), invest as much as you can in an IRA.

What's great about a Traditional IRA:
• You can deduct your contribution on your tax return (if you qualify).
• You don't owe taxes on your investments until you withdraw the money.
• You can invest in almost anything.

You're eligible...
• As long as you have earned income.
• For a deduction if you're not covered by a retirement plan at work or...
• You're covered by a plan but your modified adjusted gross income (AGI) is $52,000 or less ($83,000 for married couples filing jointly). You get a partial deduction if it's less than $62,000 ($103,000 for married couples).
• You're not covered by a plan but your spouse is and your modified AGI is $156,000 or less. You get a partial deduction if it's less than $166,000.

What's great about a Roth IRA:
• It's one of the only true tax-free investments: You can withdraw your earnings without tax or penalty as long as you're over 59 1/2 and the Roth is at least five years old.
• While you can't deduct your contributions, you can withdraw them at any time tax- and penalty-free.
• You don't have to begin making withdrawals at age 70 1/2.

You're eligible if...
• You have earned income and your modified AGI is below $99,000 for single filers ($114,000 for a partial contribution), $156,000 for joint filers ($166,000 for partial).
Your 401(k) A top priority Go for an IRA MONEY's best savings strategy Take your 401(k) with you When is converting to a Roth IRA the right move? Withdraw money sparingly, if ever, and never pay a penalty First things first Tax-deferred accounts come next Ready for the Roth IRA
Shawn Larsen, 47, has spent his career as a seismologist. Now he's thinking about biking and backpacking. Here's how he's saving to reach his goals. (more)
Before you even think of leaving your job, be sure your family is covered. (more)
Otis Braswell, 50, retired five years ago and cherishes the extra family time. But he's also learned an important lesson - golf isn't as much fun when all your friends are working. (more)
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.