Retirement
Saving for retirement, from 401(k)s, IRAs and employer matches to how much to save and the tax breaks that help your money grow.
Retirement accounts
Saving for retirement
Retirement accounts are one of the most powerful tools you have for building wealth, thanks to tax breaks, employer matching and decades of compound growth. The earlier you start, the less you need to save each month.
Retirement accounts explained covers how 401(k)s, traditional IRAs and Roth IRAs work, contribution limits, and how to choose between them. Make sure you're not leaving money on the table with what is a 401(k) match?, and set a target with how much should you save for retirement?
Changing jobs? How to roll over a 401(k) explains your options for an old workplace plan and how to avoid taxes and penalties.
Your retirement savings need investing to grow. How to start investing explains simple, low-cost ways to do it.
Investing for retirement works best when your day-to-day finances are in order. Build an emergency fund first so you don't have to raid retirement savings for a surprise bill.
Contribution limits change most years. We update our guides each January, but always check IRS.gov for the current figures. Pond provides general information, not investment advice.
Common questions
A common guideline is to save around 15% of your income for retirement, including any employer match, starting as early as you can. If that's not possible yet, start with enough to get your full employer match and increase your contribution each year.
Traditional accounts give you a tax break now and are taxed when you withdraw. Roth accounts are funded with after-tax money but qualified withdrawals in retirement are tax-free. Roth often suits people who expect a higher tax rate later; many people use both.
It's never too late to start. People 50 and older can make extra catch-up contributions to 401(k)s and IRAs, and even a few years of saving and investing can make a meaningful difference.