Welcome to the course on Retirement Accounts: IRAs and 401(k)s! This comprehensive program is designed to provide you with a thorough understanding of individual retirement accounts (IRAs) and 401(k) plans, two essential tools for effective retirement planning. Throughout this course, you will delve into the definition and importance of retirement accounts, the different types of retirement accounts available, the specifics of contributing to and withdrawing from IRAs and 401(k)s, as well as the tax implications and distribution rules associated with these accounts.
In the first part of the course, we will explore Individual Retirement Accounts (IRAs), including the various types such as Traditional IRAs and Roth IRAs, the benefits of each type, contribution limits, tax implications, and the rules for withdrawals and required minimum distributions. We will also cover 401(k) plans, examining the differences between Traditional and Roth 401(k)s, contribution limits, employer matching, tax implications, and the rules for withdrawals, including loans and hardship withdrawals. Additionally, we will compare IRAs and 401(k)s, helping you understand the similarities and differences between these retirement account options and guiding you in choosing the most suitable option for your individual needs. Lastly, we will discuss important investment principles for retirement accounts, including risk and reward, diversification, and asset allocation, and we will examine real-world case studies of successful retirement planning, drawing valuable lessons from these examples. By the end of the course, you will be equipped with the knowledge and skills necessary to make informed decisions about your retirement accounts and begin planning for a secure financial future.