When it comes to saving for retirement, you have a lot of options.

That’s the good news. And, sometimes, it’s the bad news.

You know you need to save for your golden years. Really, you do. But with all the resources out there, figuring out where to begin can feel overwhelming.

So, let’s try to banish some of that information overload in 30 minutes or less.

3 Steps for Choosing the Right Retirement Account

Laura Adams of the Money Girl podcast wants to help you gain clarity. In her latest episode, “Choose the Right Retirement Accounts in 3 Simple Steps,” she offers advice for choosing the best account — or accounts — based on your situation.

Here’s a brief summary.

1. Know the Restrictions

Not all accounts are created equally. The IRS imposes restrictions on certain IRA (Individual Retirement Arrangement) accounts. For instance, there’s an income limit for a Roth IRA and deduction limit for a traditional IRA.

2. Explore Your Options

Retirement plans fall into three basic categories: employer-sponsored, self-employed and individual. Examples of each include a 401(k) (employer-sponsored plan), a solo 401(k) (self-employed) and a traditional IRA (individual).

3. Choose Your Tax Types

After deciding on the retirement plan (or plans) for you, determine your tax type: traditional, Roth or a combination of both. Your decision depends on factors such as your income tax rate in retirement and whether or not you want penalty-free access to your account before punching your time card for the last time.

Listen to the entire episode on the Money Girl podcast and check out the accompanying blog post for more information on retirement accounts.

And if you want some money-making tips to bulk up your nest egg, you’re in luck! Lisa Rowan, senior writer and producer at The Penny Hoarder, shares a couple of ways you can cash in at home in the episode.

Kathleen Garvin is an editor for The Penny Hoarder. She currently has enough retirement savings to live in poverty for one year. You can follow her on Twitter @itskgarvin.

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