Unsure which retirement account to choose? We have some tips
5/7/202611 min
Retirement accounts are not just a vehicle to let your money grow over time for when you're ready to stop working. They're also a tax shelter. In this episode, we talk about how much you can expect to save in taxes, the difference between pre-tax and post-tax accounts, and how to decide which to prioritize. Spoiler: when in doubt, just pick one and get started.
Follow us on Instagram: @nprlifekit
Sign up for our newsletter here.
Have an episode idea or feedback you want to share? Email us at lifekit@npr.org
Support the show and listen to it sponsor-free by signing up for Life Kit+ at plus.npr.org/lifekit
See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.
Clips
Transcript preview
First 90 secondsSpeaker 00:00
This message comes from Rosetta Stone. Spring travel coming up? Rosetta Stone has been the trusted leader in language learning for over 30 years. Ready to start learning a new language this spring? Visit rosettastone.com/npr today.
Marielle Segarra· Host0:13
You're listening to Life Kit from NPR. [upbeat music] Hey, it's Marielle. Tax Day has passed, so you don't have to think about your taxes for another year, right? Nah, that's wrong. You could be making better choices now that'll save you money in taxes in 2026, like putting some money into a retirement account.
Amanda Holden· Guest0:37
The taxation of retirement accounts is probably the most misunderstood concept of investing, and what I hate is that it creates this real roadblock to people getting started.
Marielle Segarra· Host0:51
This is Amanda Holden, financial educator and author of the book How to Be a Rich Old Lady. Now, the thing is, many of us were never taught how to do all this, and even if we know a little bit about it, the details get complicated.
Amanda Holden· Guest1:04
What we know is that tax law in the US is like this haunted patchwork doll that has been a- added to and amended over time, and you can think of retirement accounts as just one cursed limb of the creation.
Marielle Segarra· Host1:19
Spooky. But don't worry. On this episode of Life Kit, I'm gonna walk you through this. We will talk about how retirement accounts save you money on taxes, what the two main types of accounts