Workplace Retirement Plans Help You Save

Maybe you're in a high-flying corporate career, or you've dedicated yourself to nonprofit work, teaching or caring for the sick.

Whatever your job, no doubt it reflects your interests and skills. It's also where you likely can prepare for retirement.

401(k) plans
Most private sector employers offer participation in 401(k) plans for good reason. They come with various tax breaks that help workers amass handsome savings over time.

This year, individuals can stash up to $15,500 of pre-tax earnings in a plan, and those who are 50 or above can save $20,500. Assets grow tax-deferred, meaning you don't pay the IRS until you cash out of your 401(k). This enables capital gains and dividends to be reinvested, thereby maximizing growth.

The best part about 401(k) plans? Employers usually contribute to them on behalf of employees. This year, the limit on combined contributions from employers and their workers is $45,000 per individual, or $50,000 for those 50 and older, not to exceed 100 percent of a worker's total compensation.