When it comes to planning out your retirement while living in an apartment, you may wonder what options are available for you. The right one can depend on the stage you are in your life right now, what your work is able to offer, and even whether you work for yourself or not. Knowing this information and learning about the different types of 401ks can help you make some smart financial decisions that will serve you well in the future.

As you do some of that research, you will find that there are two basic types of 402ks that you can work with including the Roth and the traditional. Both of these are going to be ones that your employer will offer, but they way they are taxed can be different.

First, we have  the traditional 401k. This is going to offer the tax benefits on the front end. The money that you put into the retirement account will go there tax-free, but you will pay taxes on any employer match that you get and the withdrawals that you take out later on. This is deferring the taxes until you retire, but can give you some tax benefits now if you need some. Many people like to use this one right now because it can lower their tax bills so they owe less and they get the benefit of having a retirement account growing for more years and at a higher rate with the employer match.

You can also choose to go with a Roth IRA. This is going to offer you tax free growth. You will be where your money is taxed now, at the current rate, and then when you take the money out when it is time to retire, you will not be taxed at all. This can be good if you do not want to deal with taxes later on and you aren’t worried about the issues with not getting a tax break in the here and now. You can talk to your financial advisor to see which one is right for you.

It is important to take your time to find the right apartment and make it all your own. That is why we encourage you to come check out our available  apartments in the Historic Core District to see if they are the right new home for you. We have taken the time to provide amazing amenities, lots of space, and the perfect location for all of your living needs, no matter what is on the checklist. When you are ready to find your new home, contact a member of our team to take a tour.