Tax-advantaged accounts hold your tax-advantaged investments while regular taxable brokerage accounts can hold tax exempt investments (or tax-free investments) that do not require you to pay any taxes on income or gains.
Typically, 401(k) savings plans come from large, for-profit businesses who offer them to their eligible employees. These employees choose a tax-deferred contribution amount that follows that particular employer’s investment options.
Both 403(b) plans and 457 plans have very similar features to 401(k) plans. The difference is that 403(b) plans are for employees of non-profit, tax-exempt business, such as schools, churches, or hospitals.
A traditional Individual Retirement Account (IRA) is a tax-deferred investment account available through numerous brokerages and investing services. As long as you are younger than 72, you can deduct contributions on your tax return the year you contribute to the account.
A 529 savings plan acts as a tax-advantaged investment account helping your family save for education expenses. It works by contributing post-tax dollars into your investment account and then seeing your investments grow tax-free.