Traditional IRAs and 401(k)s

IRAs and 401(k)s are more than just convenient places to store your savings before retirement. Contributing to these accounts can help save money on your current tax bill. Meanwhile, investment gains, dividends, and savings continue to grow on a tax-deferred basis, but there’s a good reason for that.

You see, you won’t be able to avoid them forever. Withdrawals will be taxed further down the line, so when you check your balance don’t assume the full amount you see if is yours for the taking. Seniors who turn 72 will also be subject to required minimum distributions unless they’re working. Once they retire, RDMs will kick in as per usual.