A retirement account is a financial tool designed to help individuals save money for their retirement years. These accounts often provide tax advantages, allowing people to grow their savings over time without immediate tax burdens. Common types of retirement accounts include 401(k) plans, IRAs (Individual Retirement Accounts), and Roth IRAs, each with specific rules regarding contributions and withdrawals. Contributions to retirement accounts can come from both employees and employers, depending on the account type. The funds in these accounts are typically invested in various assets, such as stocks and bonds, to increase their value. Access to the money is usually restricted until the individual reaches a certain age, promoting long-term savings.