Retirement Account Plans Compared & Broken Down

Let's be real–nobody gets excited about comparing retirement accounts. Between Traditional IRAs, Roth IRAs, and that mouthful called the Thrift Savings Plan (TSP), it's enough to make your eyes glaze over. But here's the thing: Choosing the right accounts could mean the difference between "just getting by" and "living it up" in retirement.

Why The Right Retirement Account Matters

I remember sitting down with a school administrator in his early 50s who'd been dumping money into his 403(b) for decades. "Why that one?" I asked him. His answer? "That's what the guy down the hall told me to do."

After a closer look, we discovered that he was missing out on thousands in potential tax savings by not adding a Roth IRA to the mix.

Bottom line: Each of these retirement accounts has its pros and cons:

Retirement Account Comparison Chart

Account Type	Eligibility	2025 Contribution Limits	Tax Treatment	Employer Match	Best For
401(k)	Employees of private companies	$23,000 ($30,500 catch-up if 50+)	Tax-deferred contributions; taxable withdrawals	Often available (typically 3–6%)	Employees seeking employer match with higher contribution limits
Roth 401(k)	Employees of companies offering this option	$23,000 ($30,500 catch-up if 50+)	After-tax contributions; tax-free qualified withdrawals	Often available, but match is pre-tax	Those expecting higher tax brackets in retirement
403(b)	Employees of non-profits, educational institutions, religious organizations	$23,000 ($30,500 catch-up if 50+)	Tax-deferred contributions; taxable withdrawals	Sometimes available	Teachers, hospital workers, non-profit employees
457 Plan	State and local government employees, some non-profits	$23,000 ($30,500 catch-up if 50+)	Tax-deferred contributions; taxable withdrawals	Sometimes available	Government employees wanting flexibility
Thrift Savings Plan (TSP)	Federal employees and uniformed services	$23,000 ($30,500 catch-up if 50+)	Traditional (tax-deferred) or Roth options	Available for most (agency matching)	Federal employees seeking low-cost investment options
Traditional IRA	Anyone with earned income (income limits for deductibility)	$7,000 ($8,000 catch-up if 50+)	Tax-deductible contributions (income limits apply); taxable withdrawals	None	Supplemental retirement savings, tax deduction now
Roth IRA	Anyone with earned income under certain limits	$7,000 ($8,000 catch-up if 50+)	After-tax contributions; tax-free qualified withdrawals	None	Long-term growth, tax diversification, flexibility
SIMPLE IRA	Employees of small businesses (under 100 employees)	$16,000 ($19,500 catch-up if 50+)	Tax-deferred contributions; taxable withdrawals	Required (3% match or 2% non-elective)	Small business employees seeking simplicity
SEP IRA	Self-employed or small business owners	25% of compensation or $69,000 (whichever is less)	Tax-deferred contributions; taxable withdrawals	Employer contributions only	Self-employed individuals, small business owners
Solo 401(k)	Self-employed with no employees (except spouse)	$69,000 total ($76,500 if 50+)	Traditional (tax-deferred) or Roth options	Self-matching as both employer and employee	Self-employed seeking maximum contributions
Defined Benefit Plan	Business owners seeking large contributions	Based on actuarial calculations (can exceed $300,000)	Tax-deferred contributions; taxable withdrawals	Employer funded	High-income business owners close to retirement

How We Help

At Holistic Wealth Planning®, we don't offer cookie-cutter advice. Nobody's retirement situation is exactly the same, so why would the solution be?

Instead, we get to know you:

We listen first: What keeps you up at night? When do you want to retire? What does "enough money" mean to you?
We look at what you've got: Your existing accounts, how much you make, your tax situation–the whole picture
We play out different scenarios: "What if you do this instead of that?" with real numbers that matter to YOUR life
We recommend what makes sense: A strategy that fits your life, not some generic formula

Let's Discuss

Frequently Asked Questions

How do I know whether to go with a Traditional or Roth IRA?

It boils down to taxes now versus taxes later. If you think you'll be in a higher tax bracket in retirement, Roth usually wins. If you need the tax break now or expect lower retirement income, Traditional often makes more sense. But honestly, there's a lot more nuance to it that we should discuss based on your specific situation.

Can I have more than one type of retirement account?

Absolutely! In fact, most of our clients do. You might have a 403(b) through work AND a Roth IRA that you set up yourself. Different accounts have different advantages, and we often recommend a mix to get the best of all worlds.

How often should I review my retirement plan accounts?

At least once a year, and definitely when big things happen in your life—new job, baby, inheritance, etc. We build these reviews into our regular conversations with clients because your life doesn't stay the same, so your retirement strategy probably shouldn't, either.

Let's Figure This Out Together

Contact Us Today

Sorting through retirement accounts—figuring out the difference between a SEP IRA and the Thrift Savings Plan—it's not exactly Saturday afternoon fun. But it doesn't have to be painful, either.

With the right person in your corner (that's us!), you can stop second-guessing and start feeling good about where your money's going. No more wasted hours on hold with some giant company where you're just an account number.

Give us a call to schedule a chat. Let's see if we're a good fit to help you make sense of all these retirement accounts.