While in the past most people would solely count on the employee pension plan or Social Security to cover their expenses in their retirement years, people these days depend on saving in advance to spend their glorious days in peace. According to most financial advisors, saving at least 10 to 15 percent of the pre-tax income is a good start. While most of us may keep savings as one of our top priorities, it is a fact that managing money matters is tough and saving is indeed excruciating. However, if you have opened a reliable savings account, the task may get simpler and hassle-free. Considering everyone’s requirements are unique, here’s a list of some of the most popular types of retirement savings accounts to help you choose the one that suits you best.

401(k) or 403(b)
This is one of the best retirement savings accounts that an employer offers its employees. Since this offers one of the easiest solutions to begin saving, many people find 401(k) or 403(b) the best retirement savings accounts for beginners or young employees. This type of account works on the principle of withholding money in the form of payroll deductions. Even when an employee leaves the current job, the account can easily be rolled over to the next employer and the saving process can continue. What makes this alternative particularly enticing is the fact that your own employer would contribute the same share of your contribution.

Solo 401(k)
This is another great option in the list of the best retirement savings accounts that allows a sole proprietor to set up this account individually and contribute an amount as both, an employer and an employee.

IRA
What makes an individual retirement account (IRA) one of the best retirement savings accounts is the fact that by saving in such an account the money tends to grow tax-free. What’s more, anyone can make a contribution up to $5500 every year in case of an IRA account. However, if you are over the age of 50, you may contribute about $6500 on a yearly basis. While contributing to both 401(k) and IRA is possible, people covered by a retirement plan may not be able to deduct their IRA contributions from their taxable income if they earn between 71,000 to 118,000 depending on their marital status. However, if you are not covered under a retirement plan, you may be able to receive a full deduction based on the income.

SEP IRA
Simplified employee pension (SEP) is another kind of account that is popular among small time business owners and people who are self-employed. As an employer, one is free to contribute about 25 percent of the income. Since a SEP IRA account is easier to make than a solo 401(k) account, many people find SEP IRA as one of the best retirement savings accounts. Many employers are known to contribute to SEP IRAs for all their employees as these accounts are hassle-free and extremely convenient.

Simple IRA
This is an extremely suitable alternative for saving that works as the best retirement savings account. A simple individual retirement account is known to allow small-time employers to create IRAs without a great deal of paperwork. The only requirement of a simple IRA account is for the employers to either match their employee’s contributions or make their own contributions. Typically, in a simple IRA account, employees can set aside a certain some with an extra amount that is usually allowed for those who are over 50.

Roth IRA
While this type of retirement savings account does not help in getting any tax deductions, the money growth in this type of Roth IRA account is tax-free and you needn’t pay any tax on withdrawals. While in case of regular IRAs you must withdraw at the age of 70, Roth IRA does not mandate you to withdraw the money at a specific age. People can freely contribute to a traditional IRA and a Roth IRA; however, the limit applies to the total contribution.

Health savings account
Health savings account allows people with highly deductible health insurance plans to save a great deal of money in an easy, tax-free manner. A health savings account helps contribute about $6,650 in the case of a family and about $3,350 a year for an individual. If an individual is 55 years or older, a contribution of about $1000 can be made. A health savings account further allows an individual to withdraw money from the account in order to pay medical expenses. In case the money is not spent, it rolls over. By the age of 65, health savings account allows individuals to withdraw the money at their own will without any penalty. However, if you choose to withdraw the money before the age of 65 for reasons other than medical expenses, you may have to pay a 20% penalty and pay taxes.