Which two retirement plans are among the most popular in the United States?

The two retirement plans that stand out as particularly popular in the United States are 401(k) plans and 403(b) plans, making this the correct choice.

A 401(k) plan is a defined contribution plan commonly offered by private-sector employers, allowing employees to save for retirement by contributing a portion of their salary on a pre-tax basis. Employers often match contributions, which can significantly enhance the savings potential for employees. The plan is highly favored due to its tax benefits and the control individuals have over their investments.

Similarly, a 403(b) plan is available primarily to employees of public schools, certain non-profit organizations, and certain government entities. It operates similarly to a 401(k) but is tailored for eligible employees of these organizations. Like the 401(k), contributions are made pre-tax, and investment growth is tax-deferred until withdrawal, making it another beneficial vehicle for retirement savings.

The prevalence of these plans in the workforce is tied to their flexibility, tax advantages, and contributions from employers, which collectively foster a culture of saving for retirement among workers in the United States.

In contrast, while IRA and Roth IRA plans are widely utilized and provide unique tax advantages, they are generally less prevalent in the employer-sponsored context compared