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2024 IRA limits increased. Make a contribution today.

Consider contributing by the April 15, 2025, deadline to give your savings more time to grow.

Contribute to an IRA

What if you could get tax-free growth and withdrawals?1

Explore Roth IRAs

What's an IRA?

An IRA is a personal, tax-deferred account the IRS created to give investors an easy way to save for retirement. Because this account is tax-deferred, any earnings you make grow tax-free. Roth, traditional, and spousal are 3 common types of IRAs, which you can read more about below.

See Roth and traditional IRA comparison

Why open an IRA?

Tax-deferred growth

Earnings within your account can grow tax-free.

Uncover the power of compounding

Investment flexibility

You can choose from a wider range of investment choices than what’s offered by most employer plans.

Secure your retirement

Use an IRA to start saving for retirement or to supplement and help diversify savings you may have in other retirement accounts.

Types of IRAs we offer

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Roth IRA
  • You won't be able to deduct your Roth IRA contribution.
  • You won't pay taxes on withdrawals of your earnings as long as you take them after you've reached age 59½ and you've met the 5-year-holding-period requirement.
  • Income limitations apply.
  • If your spouse is earning low or no annual wages, they may be able to open a spousal IRA to save tax-efficiently for retirement.
Open a Roth IRA

Learn more about Roth IRAs

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Traditional IRA
  • You may be able to deduct some or all of your traditional IRA contributions.
  • You'll pay ordinary income tax on withdrawals of earnings and on any contributions you originally deducted on your taxes.
  • No income limitations.
  • If your spouse is earning low or no annual wages, they may be able to open a spousal IRA to save tax-efficiently for retirement.
Open a traditional IRA

Learn more about traditional IRAs

Learn more about spousal IRAs

Compounding

The snowball effect that happens when your earnings generate even more earnings, not only on your original investments, but also on any interest, dividends, and capital gains that accumulate. That means that your "money makes money" and can grow faster over time.

Tax-deferral

Delaying the payment of income taxes on earnings generated in an investment account. For example, if you have a traditional IRA, you don't pay income taxes on the interest, dividends, or capital gains accumulating in the account until you begin making withdrawals.
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How your retirement savings could grow

While the annual IRA contribution limit of $7,000 may not seem like much, you can stack up significant savings.

This hypothetical example shows that if you contribute $7,000 yearly with a 6% average annual return, you could have $279,949 in your retirement account at the end of 20 years.
This hypothetical example shows that if you contribute $7,000 yearly with a 6% average annual return, you could have $279,949 in your retirement account at the end of 20 years.

Read chart description

The hypothetical bar chart shows that if you contribute $7,000 yearly with a 6% average annual return, you could have $279,949 in your retirement account at the end of 20 years.

The example uses two horizontal bar charts. The first chart shows that you could’ve earned $319,942 with 6% interest after 20 years if you started making an $8,000 catch-up contribution at age 50.
The second chart shows that you would’ve earned $279,949 with 6% interest after 20 years without making the extra catch-up contributions starting at age 50.

Wondering if you’ll have enough to retire comfortably?

Use our Retirement Income Calculator to see if you’re on track to meet your retirement needs.

Start calculation

Explore all investment tools

Helpful resources

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Investing on your own?

Check out key information you can use as you begin your successful DIY investing journey.

Get DIY resources
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Looking for professional advice?

We offer expert help at the low cost we're known for.

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Have a nonretirement savings goal?

We have a variety of accounts to select from. See which best fits your savings needs.

View accounts & plans
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Planning for retirement

Frequently asked questions

  1. Choose an IRA type. Start simple, with your age and income. Then compare IRA rules and tax benefits to find the best account for you.
  2. Transfer money. Move money directly from your bank to your new Vanguard IRA electronically. You'll just need your bank account and routing numbers (found on your bank checks).
  3. Select funds. Whether you keep it simple with an "all in one" fund that does some of the work for you or customize your own portfolio, we're confident we have something here for you.
  4. Place your trade. Once your money has fully transferred into your account, you can start investing. Simply log in to your Vanguard account and from the Transact dropdown, select Buy & sell. You can also schedule automatic investments into your account.

Read more about the steps to open a Vanguard IRA

View video walkthrough

1Withdrawals from a Roth IRA are tax free if you are over age 59½ and have held the account for at least five years; withdrawals taken prior to age 59½ or five years may be subject to ordinary income tax or a 10% federal penalty tax, or both. (A separate five-year period applies for each conversion and begins on the first day of the year in which the conversion contribution is made).
2Vanguard average expense ratio: 0.07%. Industry average expense ratio: 0.44%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2024.

For more information about Vanguard mutual funds or Vanguard ETFs, obtain a mutual fund or an ETF prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Investments in target-date funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in target-date funds is not guaranteed at any time, including on or after the target date. 

When taking withdrawals from an IRA before age 59½, you may have to pay ordinary income tax plus a 10% federal penalty tax.

All investments are subject to risk, including the possible loss of the money you invest.

There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. 

Diversification does not ensure a profit or protect against a loss.

Vanguard's advice services are provided by Vanguard Advisers, Inc. ("VAI"), a registered investment advisor, or by Vanguard National Trust Company ("VNTC"), a federally chartered, limited-purpose trust company.

The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI's Form CRS and each program's advisory brochure here for an overview.

VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.