Retirement plans are financial arrangements designed to provide individuals with income after they retire from active employment. These plans can take various forms, such as employer-sponsored pension plans or individual retirement accounts (IRAs), and they often come with specific tax implications that can impact both the employer and the employee. Understanding these tax implications is crucial as they influence how contributions and distributions are taxed, ultimately affecting retirement savings strategies.
congrats on reading the definition of retirement plans. now let's actually learn it.