401(k), 401(a), and 403(b) plans are very similar as far as retirement vehicles go. They all have the same basic contribution limits, and require participants to reach age 59.5 before taking distributions.

The major difference is in what type of employer is offering the plan. 401(k) plans are offered by private, for-profit companies. 401(a) plans are generally offered by government and nonprofit employers. 403(b) plans are for specific employees of public schools, tax-exempt organizations, and certain ministers.

These plans are all one and the same when compared to a properly structured IUL.

The tax liability for closing out a 401(k) account is quite significant. Even if you diverted your 401(k) contributions to a new IUL, you could allow your 401(k) account to compound until retirement. This way, you will have 2 streams of income at retirement!

There's no better time to start! Many individuals would have rather started with an IUL retirement account at the beginning of their careers had they known about it.

And with an IUL, you'll be setting yourself up with a lifetime tax-free retirement income.

An Individual Retirement Account (IRA) acts much like other tax qualified plans, such as a 401(k). Except unlike an annual contribution limit of $22,500 for a 401(k), the annual contribution limit for an IRA is only $6,500.

This is why self-employed individuals and business owners favor the IUL for not having limits.