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Retirement accounts are tax-advantaged and used to store and grow funds used during retirement which is defined by the IRS as after the age of 59.5 years old.
Retirement accounts include:
Employer-sponsored plans like 401(k)s offered as an employee benefit. 401(k)s allows you to contribute a portion of your pre-tax paycheck to tax-deferred investments. This reduces the amount of income you must pay taxes on that year.
Individual Retirement Accounts offered by banks, credit unions, and investment companies. There are Traditional, Roth, and Rollover IRAs available and come with tax benefits. Additionally, small business owners may be eligible for SEP IRAs.
You can learn more about the different types of retirement plans with tax advantages through the IRS website.