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Individual retirement accounts (IRAs)

Save for your future your way. Owning a Vanguard IRA® means you get flexibility. We have a variety of accounts and investments to choose from. And if you ever feel the need to partner with a professional, we've got options for that too.

Open an IRA

What if you could get tax-free growth and withdrawals?1

Explore Roth IRAs

What's an IRA?

An IRA is a personal, tax-deferred account the IRS created to give investors an easy way to save for retirement. Because this account is tax-deferred, any earnings you make grow tax-free. Roth, traditional, and spousal are 3 common types of IRAs, which you can read more about below.

See Roth and traditional IRA comparison

Why open an IRA?

Tax-deferred growth

Earnings within your account can grow tax-free.

Uncover the power of compounding

Investment flexibility

You can choose from a wider range of investment choices than what’s offered by most employer plans.

Secure your retirement

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

Types of IRAs we offer

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Roth IRA
  • You won't be able to deduct your Roth IRA contribution.
  • You won't pay taxes on withdrawals of your earnings as long as you take them after you've reached age 59½ and you've met the 5-year-holding-period requirement.
  • Income limitations apply.
  • If your spouse is earning low or no annual wages, they may be able to open a spousal IRA to save tax-efficiently for retirement.
Open a Roth IRA

Learn more about Roth IRAs

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Traditional IRA
  • You may be able to deduct some or all of your traditional IRA contributions.
  • You'll pay ordinary income tax on withdrawals of earnings and on any contributions you originally deducted on your taxes.
  • No income limitations.
  • If your spouse is earning low or no annual wages, they may be able to open a spousal IRA to save tax-efficiently for retirement.
Open a traditional IRA

Learn more about traditional IRAs

Learn more about spousal IRAs

Compounding

The snowball effect that happens when your earnings generate even more earnings, not only on your original investments, but also on any interest, dividends, and capital gains that accumulate. That means that your "money makes money" and can grow faster over time.

Tax-deferral

Delaying the payment of income taxes on earnings generated in an investment account. For example, if you have a traditional IRA, you don't pay income taxes on the interest, dividends, or capital gains accumulating in the account until you begin making withdrawals.
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How your retirement savings could grow

While the annual IRA contribution limit of $7,000 may not seem like much, you can stack up significant savings.

This hypothetical example shows that if you contribute $7,000 yearly with a 6% average annual return, you could have $279,949 in your retirement account at the end of 20 years.
This hypothetical example shows that if you contribute $7,000 yearly with a 6% average annual return, you could have $279,949 in your retirement account at the end of 20 years.

Read chart description

The hypothetical bar chart shows that if you contribute $7,000 yearly with a 6% average annual return, you could have $279,949 in your retirement account at the end of 20 years.

The example uses two horizontal bar charts. The first chart shows that you could’ve earned $319,942 with 6% interest after 20 years if you started making an $8,000 catch-up contribution at age 50.
The second chart shows that you would’ve earned $279,949 with 6% interest after 20 years without making the extra catch-up contributions starting at age 50.

Wondering if you’ll have enough to retire comfortably?

Use our Retirement Income Calculator to see if you’re on track to meet your retirement needs.

Start calculation

Explore all investment tools

Helpful resources

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Investing on your own?

Check out key information you can use as you begin your successful DIY investing journey.

Get DIY resources
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Looking for professional advice?

We offer expert help at the low cost we're known for.

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Have a nonretirement savings goal?

We have a variety of accounts to select from. See which best fits your savings needs.

View accounts & plans
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Frequently asked questions

  1. Choose an IRA type. Start simple, with your age and income. Then compare IRA rules and tax benefits to find the best account for you.
  2. Transfer money. Move money directly from your bank to your new Vanguard IRA electronically. You'll just need your bank account and routing numbers (found on your bank checks).
  3. Select funds. Whether you keep it simple with an "all in one" fund that does some of the work for you or customize your own portfolio, we're confident we have something here for you.
  4. Place your trade. Once your money has fully transferred into your account, you can start investing. Simply log in to your Vanguard account and from the Transact dropdown, select Buy & sell. You can also schedule automatic investments into your account.

Read more about the steps to open a Vanguard IRA

View video walkthrough

1Withdrawals from a Roth IRA are tax free if you are over age 59½ and have held the account for at least five years; withdrawals taken prior to age 59½ or five years may be subject to ordinary income tax or a 10% federal penalty tax, or both. (A separate five-year period applies for each conversion and begins on the first day of the year in which the conversion contribution is made).
2Vanguard average expense ratio: 0.07%. Industry average expense ratio: 0.44%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2024.