An IRA makes saving for the future less taxing

IRAs offer an opportunity to save for a comfortable retirement and long-term tax advantages too.

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What is an IRA?

An IRA (individual retirement account) is a personal, tax-deferred account the IRS created to give investors an easy way to save for retirement.

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Why invest in an IRA

Benefit from tax breaks

Save on your taxes now with a deduction, or save later with a tax-free withdrawal—it depends on the type of IRA you choose. And in between now and later, let your earnings grow tax-deferred.

Give your money a chance to grow

Build your account with income from interest, dividends, and capital gains that can compound each year without taxes nipping away at it.

Enjoy greater investment flexibility

Pick from a wider range of investment choices than what's offered by most 401(k)s and other employer retirement plans.

Help secure your retirement nest egg

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

How your savings could add up

While the annual IRA contribution limit of $6,000 may not seem like much, you can stack up significant savings.

Here's a hypothetical example: If you contribute $6,000 yearly and realize a 6% average annual return, at the end of 20 years, you could have $233,956 in your retirement account. (Note that this figure doesn't represent the return on any particular investment and the rate of return is not guaranteed.)

Vanguard's low costs add another dimension to your savings

The average Vanguard mutual fund  expense ratio is 82% lower than the industry average.* The less you pay for your funds, the more you can keep in your pocket.

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Over age 50?

Once you reach age 50, you qualify for an extra $1,000 IRA catch-up contribution. This means your annual limit jumps to $7,000, potentially adding more strength to the power of compounding and greater savings for you.

How your savings can add up

Vanguard investors just like you have lots of experiences to share.

While the annual IRA contribution limit of $6,500 may not seem like much, you can stack up significant savings.

Pay less and keep more. The average Vanguard mutual fund expense ratio is 83% lower than the industry average.*

At age 50, you quality for a $1,000 IRA catch-up contribution—jumping your annual limit to $7,500—potentially increasing the power of compounding, which could mean greater savings for you over time.

Traditional IRA

A traditional IRA lets your earnings grow tax-deferred.

Learn more about traditional IRAs

Roth IRA

A roth IRA offers tax-free growth and tax-free withdrawals in retirement.

Learn more about Roth IRAs

Spousal IRA

Help give your spouse equal footing when it comes to retirement.

Learn more about spousal IRAs

Explore professional advice

We offer expert help at the low cost you'd expect from Vanguard.

Ready to open an IRA?

New to Vanguard?

Already a Vanguard client?  Log in and add open an IRA on your account.

Ready to open an IRA?

New to Vanguard?

Already a Vanguard client?  Log in and add open an IRA on your account.

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

*Vanguard average expense ratio: 0.08%. Industry average expense ratio: 0.47%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2022.

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

All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account.

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.