IRAs are usually your first choice account for retirement saving. They allow you to save up to a maximum amount each year for your retirement nest egg, and invest that money into most types of investments. Depending on the type of IRA you invest in, you’ll either pay taxes before you contribute (Roth) or when you withdraw (Traditional). There are limits that prevent you from saving into Roth accounts above a certain income level, and a 10% penalty applies if you withdraw before you’re 59.5 years old.
