Retirement Accounts

How 401(k)s and IRAs work, the difference between traditional and Roth accounts, why an employer match matters so much, and the 2026 contribution limits.

Accounts with tax superpowers

In the US, retirement accounts are brokerage-style accounts with special tax treatment. You can hold the same index funds and ETFs inside them, but the tax rules let your money grow without a yearly tax bill on dividends and gains. Over decades, that tax shelter can add up to a big difference.

The trade-off is access. Money in these accounts is meant for retirement, and withdrawing early can trigger taxes and penalties, with some exceptions.

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