Answer:
●an employer-offered retirement account that accepts contributions from employees and employers - 401(k)
●a tax-deferred retirement savings plan available to employees of some nonprofit - 403(b)
●a tax-advantaged college savings plan- 529 plan
●a tax-advantaged savings account available through employers to pay for qualified medical expenses- health FSA
Step-by-step explanation:
●401(k): Retirement
A 401(k) is one of the most well-known tools for retirement savings. A 401(k) is an employer-sponsored retirement plan that allows employees to contribute money on a pre-tax basis. Your contributions and earnings are not taxed until you start making withdrawals.
●403(b): Retirement
Like 401(k) accounts, a 403(b) is a form of an employer-sponsored retirement account. If you work for a public school, university, or non-profit organization, you may be eligible for a 403(b) account.
With a 403(b), you make contributions before taxes are taken out of your paycheck. You don’t pay taxes on the contributions .
● ROTH IRA: Retirement
A Roth IRA works differently than a Traditional IRA. Your contributions are not tax-deductible, and you make contributions with after-tax dollars. However, Roth IRAs offer a unique advantage: your earnings and withdrawals are tax-free. Roth IRAs have the same contribution limits as Traditional IRAs.
● 529 Plan: Education
A 529 education savings plan is a tool you can use to save for your child’s college tuition and fees. The money you invest can grow over time, and if the money is withdrawn to pay for qualified educational expenses, earnings are not subject to federal income tax. Depending on your state, your contributions may also be tax-deductible.
While 529 plans do not have contribution limits, contributions toward a 529 plan count as gifts and are subject to gift-tax laws.
● Flexible Spending Accounts: Health
Some employer-offered health insurance plans include flexible spending accounts (FSAs). With an FSA, you make pre-tax contributions into a separate account to use for health expenses. You can use your FSA dollars to purchase prescription and over-the-counter medications, pay your deductibles or coinsurance, and purchase medical supplies.
