Retire on your terms

With a traditional IRA account, you don't pay taxes on the money you deposit or the money that your investment earns. But you will pay taxes when you take the money out during retirement, and penalties apply for early withdrawal.

• If you are under age 50, you can contribute $6,500 annually.

• If you are age 50 or older, you can contribute $7,500 annually.

• Current year contributions may be made at any time.

• Previous year contributions are accepted from January through April 15.

• Available as a money market or certificate account.

Putting money in: Contributions to a traditional IRA may be tax-deductible in the year you make them, depending on your income and participation in an employer-sponsored retirement plan, such as a 401(k). You can continue to contribute to these accounts as long as you have earned income (a paycheck).

Tax-deferred savings: Your contributions and earnings grow tax-deferred, which means you won't pay income taxes until you withdraw money from the account. Even if you aren't eligible for a tax deduction, your savings will still be tax-deferred.

Taking money out: You'll need to begin withdrawing (usually referred to as required minimum distributions) by age 73. The money will be taxed at your income tax rate at the time you withdraw it.

With a Roth IRA, you pay taxes on the money you contribute—but after that, the money grows tax free. You also don't pay taxes when you withdraw the money during retirement. Unlike a traditional IRA, you can take out the money you've contributed at any time, penalty free.

• If you are under age 50, you can contribute $6,500 annually.

• If you are age 50 or older, you can contribute $7,500 annually.

• Current year contributions may be made at any time.

• Previous year contributions are accepted from January through April 15.

• You can contribute at any age as long as you are earning reportable income.

• Available as a money market or certificate account.

Putting money in: With a Roth IRA, your contributions aren't tax-deductible. Contributions can be made as long as you have earned income.

Tax-deferred savings: Roth IRAs allow for tax-free growth over your lifetime.

Taking money out: Withdrawals are tax-free, subject to certain requirements:

• You're at least age 59½.

• You've had your account for at least five years.

You can still make withdrawals if you don't meet these requirements, but you may pay taxes and/or penalties.