There is no single plan that is best for retirement. There should be a mix of products to have a structured source of income. Generally, there are three main categories of retirement plans and various types of plans under each of them. All these three categories offer tax benefits to the individual if he is considered to be eligible for the plan. One can choose to have plans from among 10 best retirement plans out of the list below.

Individual retirement plans: These plans are self-funded by the individual by holding investments specifically for retirement. Individual Retirement Account (IRA) is the most common type of investment under this category and ranks high among the 10 best retirement plans. Here, the individual will have a control over his account, select his own investment options and the option to save the taxes at the time of investing or at the time of withdrawal. The allowed contributions to an IRA are limited to $5,500 for those below 50years of age and $6500 for those older.

Traditional IRAs: These plans are funded with taxed dollars where the contributions and the withdrawals are taxed and are allowed to grow on a tax-deferred basis. The contributions can be made by anyone irrespective of their income group. It is a good option for people who are expected to retire within 5 or 10 years as the contributions get the benefits of both tax deductions and tax deferral.

Roth IRA: The contributions are similar to the traditional IRA but the eligibility and the contribution limits depend on the individual’s tax filing status and the modified adjusted gross income.
There is no age bar on making contributions or on withdrawals and the money can be allowed to grow. There is no penalty on stopping the contributions before the age of 59 ½.

Employer-sponsored retirement plans: These plans are set up where a portion or majority of the contribution is made by an employer into an individual employee’s account. There are two sub-categories based on the employer’s role.

Defined contribution plans: These accounts are set by workers where a portion of the contributions will be made by the employer to meet the contributions made by the individual employee.

Defined benefit plans: These plans are set up by the employer. The contributions made is determined by the employer on an annual basis.

401(k) plans: The contributions are allowed to grow on a tax-deferred basis and are paid on the withdrawals. This plan can be advantageous if the tax-rates are lower at the time of withdrawal.
Roth 401(k) plans: The contributions are subjected to an upfront tax and thereby let the money grow with no taxes to be charged upon withdrawals. It is better to what is paid today on taxes than worrying about how much one might lose in future on paying taxes. Since this plan offers tax-free growth and tax-free withdrawal, it ranks high in the 10 best retirement plans.

403(b) plans: These are also called tax-sheltered annuities. This is an insurance plan that offers certain tax benefits that can be bought while having the ability to earn and set a guaranteed income as a lump-sum or through a series of periodic payments after retirement.
457(b) plans: This plan is offered to some tax-exempt entities and contractors by state and local governments. The contributions are directly deducted from the salary without tax deduction, allowed to grow tax-free and the withdrawals are taxed at nominal rates after the retirement age of 59 ½. The contributions are limited to $18,000.
Thrift savings plans (TSP): This plan is specifically designed for government employees, employees in the U.S. civil services and members of the military funded by individual employee salary deferral and employer contributions. Having both Roth and traditional versions, the contributions to this plan are limited to $18,000.

Self-employed or small-business-owner plans (SEP IRA): It is a simplified employee pension plan (SEP) is funded by an individual where the contribution amount is not fixed. One can contribute how much ever is possible and not invest anything when nothing is possible. The plan is easier, lower cost, and easy to administrate for self-employed people who do not have a fixed income. But, the tax-benefits are limited.

Simple IRA: It is a plan designed for businesses with up to 100 employees where the contributions are through the employee’s salary deferral and limited to $12,500.

Profit sharing plans: It is designed for sharing the financial success of a business between the employers and employees of the two parties involved- a self-employed business and a company with one or more workers. Contributions can vary each year depending on the profits made. While the employees are allowed to contribute their own money as per the individual’s IRA eligibility under certain plans, yet a few plans are linked to the regular retirement plan offered by the employer.

Apart from the 10 best retirement plans, other common plans like pension schemes, Nonqualified Deferred Contribution (NQDC) plans, cash value life insurance plans, Social securities, investments in real estates are considered some of the reliable retirement plans. Whatever combination one choose, the ultimate aim is to save more by paying less on taxes and getting more income and have a secured retired life. It is, therefore, important that one must consider all his eligibilities and make a list of ten best investments plans to start off on investments.