Retirement Accounts (IRAs & 401ks)

Retirement accounts are financial tools designed to help individuals save and invest for their future, offering tax advantages to encourage long-term savings. Common types include 401(k) plans, IRAs (Traditional and Roth), and pensions, each with unique contribution limits, tax treatments, and withdrawal rules. Employer-sponsored accounts like 401(k)s often include matching contributions, while IRAs provide more flexibility for individual savers. Some retirement accounts offer tax-deferred growth, meaning taxes are paid upon withdrawal, while others, like Roth IRAs, allow for tax-free withdrawals in retirement. Choosing the right retirement account depends on factors such as income, tax strategy, and retirement goals, making it essential to plan early for a secure financial future.