Saving for retirement is important! Two popular ways are 401(k)s and Roth IRAs. They both help you save money for when you're older, but they work a little differently.
- 401(k)s are often offered through your job.
- Roth IRAs give you more choices on how to invest your money.
- With a Roth IRA, you pay taxes now, but your retirement withdrawals are tax-free!
| Item | Detail |
|---|---|
| Annual Contribution (2025) | $7,000 |
| Investment Growth (Example) | 10% annually |
| Account Balance (25 years) | ~$400,700 |
| Tax Savings (Example) | ~$260,700 |
