Supplemental Income Retirement Plans and Group Supplemental Retirement Plans provide tax-deferred savings and let you put away more for retirement beyond the basic retirement plan your employer offers.

While the details of different tax-deferred plans vary, they all work the same way: Money goes straight from your paycheck to an investment account, reducing your current taxable income. What's more, your potential investment earnings won't be taxable until you withdraw them in retirement.

If employers offer a supplemental retirement plan, they determine the investment choices and other plan features. Then you decide how much to contribute and to which investments. With higher contribution limits than IRAs and the potential for a larger tax benefit near term, tax-deferred plans may be one of the best ways for you to save more for the retirement you want.

Contributions are voluntary additional amounts you can make on your own. The Internal Revenue Code limits the total amount you can contribute.