An Individual Retirement Account (IRA) is a type of tax-advantaged account that you can use to save for retirement, outside of a workplace plan. Investments like annuities, mutual funds, bonds and stocks might be available to you through an IRA. Open an IRA
The TIAA IRA Selector Tool can help you find out which type of IRA would be best for your financial situation. Both types of IRAs are used to save for retirement, the difference is how and when you get potential tax benefits. Just answer a few simple questions.
If your employer offers a 401(k) or 403(b) retirement savings account, make sure you start by contributing the amount they will match, if any. We often recommend maxing out your contribution before considering an IRA.
Compare IRAs and 401(k)/403(b)
| Roth IRA | Traditional IRA | 401(k)/403(b) | |
| Contributions | After-tax | Pre-tax | Pre-tax |
| Withdrawals | Tax-free | Taxable | Taxable |
| Limits | $6,000 for 2026 and 2026 (If you’re 50+, you can contribute an additional $1,000) | $6,000 for 2026 and 2026 (If you’re 50+, you can contribute an additional $1,000) | $19,000 for 2026 and $19,500 for 2026 (If you’re 50+, you can contribute an additional $6,000 for 2026 and $6,500 for 2026) |
| Age you can start distributions | Any7 | 59 ½ | 59 ½ |
| Required minimum distribution age | None | 72* | 72* |
| Account is controlled by | You | You | Your employer |