Table: Stashing Away More Retirement Cash

If you've made the maximum contribution to your 401(k) plan and want to do 
      more, here are your options:
      AFTERTAX    Works like the    Tax-deferred buildup     May not be an
      401(k)      regular 401(k),   of investment income,    attractive alter-
                  except contribu-  just like the regular    native if the plan
                  tions come out    401(k).                  doesn't have de-
                  of aftertax in-                            sirable investment
                  come, with limits                          options.
                  on maximum 
      AFTERTAX    While the tax-    Tax-deferred buildup     Restrictions on 
      INDIVIDUAL  deductible IRA    of investment income.    early withdrawal.
      RETIREMENT  is off-limits to  Investor is not lim-     When money is with-
      ACCOUNT     most people who   ited to the 401(k)       drawn, earnings are
                  have a pension    plan's choices.          taxed as income
                  plan, individ-                             even if they are
                  uals can still                             capital gains.
                  put up to $2,000                           Extra investor must
                  a year ($2,250                             keep track of nonde
                  for a couple) of                           -ductible contrib-
                  aftertax money                             utions.
                  into an IRA.
      VARIABLE    A mutual fund     Tax-deferred buildup     Fees can be high.
      ANNUITY     tucked inside an  of investment            Insurance charges 
                  annuity "wrap-   income. No limit on      can add 1.25% more
                  per," often a    amount of aftertax       in expenses every
                  joint offering    dollars that go into     every year. Most
                  of an insurance   plan. Investments        variable annuities
                  company and a     may be made at any       have declining
                  mutual-fund       time and in varying      surrender charges.
                  company.          amounts. Investor        Restrictions on 
                                    is not limited to the    early withdrawals.
                                    funds in the 401(k) 
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