A retirement account is a financial tool designed to help individuals save money for their retirement years. These accounts often provide tax advantages, allowing contributions to grow tax-deferred or tax-free until withdrawal. Common types of retirement accounts include 401(k) plans, IRAs (Individual Retirement Accounts), and Roth IRAs. Contributions to retirement accounts can come from both employees and employers, depending on the account type. The funds in these accounts can be invested in various assets, such as stocks, bonds, and mutual funds, to potentially increase their value over time, ensuring a more secure financial future during retirement.