Financial experts estimate that you may need up to 85% of your pre-retirement income in retirement. An employer-sponsored plan might not be enough to accumulate the savings you need. Fortunately, you can contribute to both a Roth and Traditional IRA.

An Individual Retirement Account (IRA) is a tax-advantaged account designed to help you save for retirement. There are two main types, Roth and Traditional, each with different advantages.

With a Roth IRA, you make contributions with money you've already paid taxes on (after-tax) and your money may grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.

In a Traditional IRA, you make contributions with money you may be able to deduct on your tax return and any earnings potentially grow tax-deferred until you withdraw them in retirement1.

In either case, the tax benefits allow your savings to grow, or compound, more quickly than in a taxable brokerage account.