A retirement savings plan, such as a 401(k), 403(b) and 457(b), is a retirement account offered, set up and managed by an employer. Contributions into a retirement savings plan are pre-tax, which means you pay less in taxes while also potentially grow tax-free over time.

A retirement savings plan can help enable you to confidently transition into retirement, providing you with income you need to maintain the lifestyle you choose.

You should begin your retirement planning as early as possible, starting with your first paycheck. The earlier you begin saving, the more time your money has the opportunity to grow. In some instances, your employer may also match your pre-tax contribution.

The difference between a traditional and Roth savings plan is in how the money is taxed.

• With a traditional account, such as a 401(k), 403(b) or 457(b) plan, contributions are made before taxes are deducted from your paycheck. This reduces your current taxable income, providing immediate tax savings. However, you will pay taxes on these funds (and their earnings) when you withdraw them in retirement.
• With a Roth account, contributions are made with after-tax dollars, meaning you pay taxes upfront. The advantage is that both your contributions and their earnings can be withdrawn tax-free in retirement, provided certain conditions are met.

Not all employers offer both traditional and Roth contributions for retirement savings plans. It depends on the specific retirement plan options provided by the employer. It's essential to check with your employer to understand your available options.

Switching jobs can impact your retirement planning, but there are several options to ensure your savings continue to grow:

• Rollover to your new employer's plan: If your new employer offers a retirement savings plan, you might be able to transfer your old plan into the new one. Consolidating your retirement savings plans in one place is a great way to easily stay on top of your retirement savings, making it easier to manage wholistically.
• Leave your plan with your old employer: while it may seem easy in the short term to leave old retirement savings plans where they are, it can be challenging to keep track of multiple accounts over time. It’s important to check in on your savings plans regularly to ensure that your investment allocations remain aligned with your goals.

By carefully considering these options, you can maintain the growth and benefits of your retirement savings.