US retirement accounts sort along two questions. First, who opens the account: an employer, through a workplace plan such as a 401(k), 403(b) or 457(b), or the individual, through an individual retirement arrangement (IRA). Second, when the tax happens: in a traditional account, contributions may be deductible and withdrawals are taxed; in a Roth account, the IRS states that contributions "aren't deductible" and qualified distributions are tax-free. Nearly every account name is a combination of those two answers.
This article explains how the IRS describes the main US retirement account types. It is general information, not investment, tax or financial advice. It does not say which account anyone should open, how much to contribute or what to hold. A CPA or enrolled agent, your plan administrator, or a financial professional registered with the appropriate regulator can answer questions about your own situation.
Sources read September 11, 2026. Contribution limits, income limits and distribution ages change by year or by statute and are deliberately not stated here; the IRS pages linked below carry the current figures.
Types of retirement accounts explained: the two-question map
| Traditional (pre-tax or deductible) | Roth (after-tax) | |
|---|---|---|
| Employer plan | Traditional 401(k), 403(b), governmental 457(b) | Roth contributions inside a 401(k), 403(b) or governmental 457(b), where the plan offers them |
| Individual account | Traditional IRA | Roth IRA |
That grid covers most of what a household meets. The IRS's own list of retirement plan types, last reviewed April 8, 2026 and read September 11, 2026, is longer. It names IRAs, Roth IRAs, 401(k) plans, SIMPLE 401(k) plans, 403(b) plans, SIMPLE IRA plans, SEP plans, SARSEP plans, payroll deduction IRAs, profit-sharing plans, defined benefit plans, money purchase plans, employee stock ownership plans, governmental plans, 457 plans and multiple employer plans. Most of those are employer plan designs a worker joins rather than chooses.
The employer plans
401(k)
A 401(k) is a plan an employer sets up that lets employees contribute part of their pay. The IRS page on 401(k) contribution limits, last reviewed April 8, 2026, describes the contribution as an "elective deferral," meaning pay the employee elects to put into the plan instead of receiving it. Many employers add contributions of their own, often a match, under rules written in the plan document.
A point that surprises people: the IRS states that "generally, you aggregate all elective deferrals you made to all plans in which you participate," including 401(k), 403(b), SARSEP and SIMPLE IRA plans. Two jobs do not generally mean two separate employee limits.
403(b)
The IRS's 403(b) page, last reviewed January 30, 2026, describes it as "a retirement plan offered by public schools and certain 501(c)(3) tax-exempt organizations," also called a tax-sheltered annuity plan. The IRS lists the account forms as an annuity contract through an insurance company, a custodial account invested in mutual funds, or, for church employees, a retirement income account. From the employee's side it works much like a 401(k): contributions come out of pay under the plan's rules.
457(b)
The IRS's 457(b) page, last reviewed April 9, 2026, states that the sponsoring organization "must be a state or local government or a tax-exempt organization under IRC 501(c)." The IRS treats governmental and non-governmental 457(b) plans separately, and the difference matters for how the money is held and paid out. The plan's own summary states which kind it is.
Pensions: the other kind of employer plan
The accounts above are defined contribution plans: the account balance is what was contributed plus or minus what happened to it. A defined benefit plan, which the IRS lists separately, is the traditional pension, where the plan promises a benefit calculated by a formula. A defined benefit plan is not an account the worker directs, and it is described here only so the two are not confused.
The individual accounts
Traditional IRA
An IRA is opened by the individual, not the employer, at a financial institution. The IRS's traditional and Roth IRAs page, last reviewed January 8, 2026 and read September 11, 2026, describes the traditional version this way: "You can deduct your contributions if you qualify," and "any deductible contributions and earnings you withdraw" are taxable. Whether a contribution is deductible depends on income and on whether the person or a spouse is covered by a workplace plan, under rules the IRS publishes each year.
Roth IRA
The IRS's Roth IRA page, last reviewed August 9, 2026, describes a Roth IRA as "an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA." The differences are the ones that define it: contributions are not deductible, and "if you satisfy the requirements, qualified distributions are tax-free." The ability to contribute is limited by filing status and income, with limits the IRS publishes annually.
One further difference the IRS names: a traditional IRA is subject to required minimum distributions, while for a Roth IRA they are "not required if you are the original owner."
When the tax happens: traditional versus Roth
This is the single most useful idea in the whole account family, and it applies inside employer plans as well as IRAs.
- Traditional: tax is generally deferred on the way in, then the withdrawal is taxed as income.
- Roth: tax is paid on the money before it goes in, and qualified withdrawals come out tax-free.
Neither is described by the IRS as better. Which one produces less total tax for a person depends on their tax rate now compared with their tax rate when the money comes out, and nobody knows the second number in advance. That judgment belongs to the person, with a tax professional if they want one.
What this map deliberately leaves out
Figures. Contribution limits, catch-up amounts, income limits for Roth IRA eligibility and the age at which required minimum distributions begin are all set by the IRS or by statute and change. They are not stated in this overview so that nothing here goes stale. The IRS pages linked above are the current source.
Penalties and exceptions. Early withdrawals from these accounts can carry an additional tax, with named exceptions. That is a separate subject with its own rules.
Self-employed accounts. SEP, SIMPLE IRA and solo 401(k) arrangements appear on the IRS list and are covered separately.
What to invest in. What an account holds is outside what this site covers.
Two accounts people confuse with retirement accounts
A health savings account. An HSA is a health account, tied to a qualifying high deductible health plan, and it is not on the IRS's retirement plan list. It is mentioned here because IRS Publication 969 (2025) states that there is no additional tax on non-medical distributions made after the account holder reaches age 65, which makes it behave partly like a retirement account in later years. The health plan design it requires is covered in our explainer on the low premium, high deductible trade-off.
Cash value life insurance. A permanent life insurance policy can build cash value, and it is sometimes discussed alongside retirement saving. It is an insurance contract, not one of the retirement plan types the IRS lists, and it is governed by insurance law and the policy's own terms. How the two main life insurance contracts differ is covered in our piece on term vs whole life insurance.
The paperwork every account shares
Every one of these accounts has a governing document (the plan document for an employer plan, the account agreement for an IRA), a periodic statement, and a beneficiary designation form naming who receives the account on the owner's death. The beneficiary form is its own legal document, and the general idea of how beneficiary designations work is covered in our explainer on life insurance beneficiary designation. How that form interacts with a will or an estate for a specific retirement account is a question for an estate attorney, not a general article.
Who can answer a question about your own accounts
The plan administrator named in the employer plan's Summary Plan Description, for what the plan offers, whether it has Roth contributions and what its rules say. The IRA custodian, for account-level questions. A CPA or enrolled agent, for deductibility, Roth eligibility and how contributions and distributions are reported. What they need from you: the Summary Plan Description, recent account statements, Form W-2 and, for IRAs, the custodian's year-end tax forms. The IRS publishes the rules and current figures on its retirement plans pages.
Frequently asked questions
What are the main types of retirement accounts in the US?
Employer plans, mainly 401(k), 403(b) and 457(b), and individual accounts, mainly the traditional IRA and Roth IRA. The IRS's list of retirement plan types also includes SEP, SIMPLE, profit-sharing and defined benefit plans, among others.
What is the difference between a 401(k) and a 403(b)?
Both are employer plans funded by employee pay deferrals. The IRS describes a 403(b) as a plan "offered by public schools and certain 501(c)(3) tax-exempt organizations," while a 401(k) is offered by other employers, including private companies.
What is the difference between a traditional and a Roth IRA?
The IRS states that traditional IRA contributions may be deductible if you qualify and withdrawals of deductible contributions and earnings are taxable, while Roth IRA contributions "aren't deductible" and qualified distributions are tax-free.
Is an HSA a retirement account?
Not by the IRS's list. It is a health account, but IRS Publication 969 states that the additional tax on non-medical withdrawals does not apply after age 65, so it behaves partly like one later in life.
Sources, all read on irs.gov September 11, 2026: "Types of retirement plans," last reviewed April 8, 2026. "Retirement topics, 401(k) and profit-sharing plan contribution limits," last reviewed April 8, 2026. "IRC 403(b) tax-sheltered annuity plans," last reviewed January 30, 2026. "IRC 457(b) deferred compensation plans," last reviewed April 9, 2026. "Traditional and Roth IRAs," last reviewed January 8, 2026. "Roth IRAs," last reviewed August 9, 2026. IRS Publication 969 (2025).