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When asked by Wallace what percentage of Americans she thought were financially illiterate, she said, "Truthfully, probably 95%." So-called "traditional" accounts, including 401(k)s and individual retirement accounts, give you a tax break up front. Because you fund these accounts with money you've already paid taxes on, your contributions don't count against your taxable income. Contributions to these accounts are made with after-tax money, but investments in them grow free from federal or state tax. You can contribute to any state's plan — and each plan comes with different investing options — but you'll generally only receive tax benefits, if they're offered, by investing in your home state's plan.
Persons: Suze Orman doesn't, Suze, Orman, Chris Wallace, Max, Orman —, Wallace, here's, Roth, you've, Sheryl Garrett, Powers, they're Organizations: Garrett Planning Network, CNBC, Internal Revenue
SecureSave, a fintech launched in 2020, works with employers to offer emergency savings accounts. The origins of SecureSave — a Kirkland, Washington-based fintech that works with companies to offer emergency savings accounts, or ESAs, to employees — began with a single email to a Seattle-based venture studio and investor. In some ways, emergency savings accounts resemble health savings accounts, through which workers can set aside pre-tax earnings to save for medical care. In the US, health savings accounts have grown over time into a nearly $100 billion industry, by assets under management, according to the HSA industry group Devenir. But according to Miller, employers are recognizing that ESAs can pay for themselves — through employee retention and as a competitive advantage when hiring.
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