There is no single best retirement plan. The right mix usually starts with any employer plan that offers a match, adds an IRA once you're capturing that match, and layers on other accounts after those are maxed. This guide breaks down the common account types, who each one is for, and where to open them.

Unless you have a company pension, you probably have a 401(k) or 403(b). Contribute at least enough to get the full employer match. Beyond that, you can open additional accounts through a brokerage based on your goals.

Five places to open an investment account in 2026

If you don't know where to start, these five providers all have strong retirement offerings.

Fidelity Investments

One of the best-known brokerages, Fidelity pairs a broad investment menu with low fees. It offers 401(k)s, traditional and Roth IRAs, mutual funds, bonds, and more, with well-regarded site navigation, research tools, and customer service.

Pros

• Strong customer service and mobile app
• Deep educational and research offerings
• Commission-free stock and ETF trades
• Large fund selection, including zero-expense-ratio index funds

Cons

• Higher broker-assisted trade fee
• Trading restrictions on some securities
• Less hands-on advisor relationship at lower asset levels

Vanguard

Vanguard is the firm that popularized low-cost index investing, and it remains a default choice for retirement savers who want simple, cheap, diversified funds. It offers traditional and Roth IRAs, SEP and SIMPLE IRAs, solo 401(k)s, and its own target-date funds, which are among the lowest-cost available.

Pros

• Very low fund expense ratios
• Strong lineup of index and target-date funds
• Client-owned structure, so profits go back into lower fees

Cons

• Dated website and app compared with competitors
• Fewer active-trading tools
• Customer service can be slower at peak times

E*TRADE

Founded in the 1980s and now owned by Morgan Stanley, E*TRADE offers a wide set of research and educational tools, including sustainable-investing insights. Its IRA lineup includes an account for minors with earned income and the Complete IRA, built for people over 59 1/2 who want easier access to their money.

Pros

• Proprietary tools for risk and portfolio analysis
• Futures trading for advanced investors
• Two mobile apps and a deep resource library

Cons

• Website is not the most intuitive
• No fractional shares except through the robo-advisor
• No dedicated advisor at standard tiers

Betterment

Betterment is a robo-advisor with two tiers: an automated digital plan with no account minimum, and a premium plan (roughly $100,000 to qualify) that adds access to Certified Financial Planners. You set goals, such as a down payment by a target year, and it builds and rebalances a portfolio toward each one. Retirement can be one of those goals, and the dashboard shows progress across short- and long-term goals in one place.

Pros

• Goal-based portfolios and automatic rebalancing
• Low 0.25% management fee on the digital plan

Cons

• On-demand support is weekdays only
• Higher fee for the advice tier
• No 529 or custodial accounts

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Charles Schwab

In the business since 1971, Schwab serves both new and experienced investors, with no account minimums and few incidental fees (a wire transfer runs about $25). It offers IRAs, custodial accounts, business accounts, and trust accounts, plus commission-free stock, options, and ETF trades. Schwab has largely stayed out of direct crypto, though clients can trade Bitcoin futures. Schwab also absorbed TD Ameritrade, so former TD Ameritrade accounts and the thinkorswim platform now live at Schwab.

Pros

• Wide range of account types
• Highly customizable trading platform
• Commission-free stock, options, and ETF trades

Cons

• Phone menu to reach support

Types of retirement accounts

Every account type has its own rules on who it's for. A well-built plan usually uses more than one.

Defined contribution plans

An employer sets up a defined contribution plan and the employee, sometimes with the employer, makes contributions to an account meant to grow until retirement. Most are 401(k) or 403(b) plans. Unlike a defined benefit plan, a defined contribution plan does not promise a set retirement benefit; the balance rises and falls with the investments. Contributions usually come straight from your paycheck as a percentage you choose, and employers often match up to a limit, such as 3% to 5% of pay.

401(k) plans

A 401(k) is a tax-advantaged defined contribution plan, usually offered by for-profit employers, often with a match. Earnings grow tax-deferred. You can withdraw penalty-free at 59 1/2, paying ordinary income tax on traditional 401(k) withdrawals. Withdraw before 59 1/2 and you generally owe a 10% penalty on top of the tax.

403(b) plans

A 403(b) works almost identically to a 401(k) but is offered by nonprofits such as schools and hospitals. Many nonprofits do not match contributions. One quirk: if you have 15 or more years of service with certain organizations, your plan may allow an extra service-based catch-up contribution that a 401(k) does not offer, on top of the age-50 catch-up.

457(b) plans

A 457(b) is a deferred compensation plan for state and local government employees, and some employees of tax-exempt organizations. (Federal employees use the Thrift Savings Plan instead.) You can contribute up to 100% of your salary or $24,500 in 2026, whichever is less. Its standout feature: withdrawals before 59 1/2 after you leave the employer are not subject to the 10% early-withdrawal penalty. Government employers usually don't match; the 457(b) is a supplement to a pension.

Solo 401(k)

A solo 401(k) is for a business owner with no employees, though you can cover a spouse who earns income from the business. You can open one at most brokerages, and you'll need an Employer Identification Number. For 2026, total contributions are capped at $72,000 (or 100% of earned income), with a catch-up on top of $8,000 at 50 or older, or $11,250 for ages 60 to 63.

IRA plans

An IRA is an individual account you open at a bank, credit union, or brokerage. Contributions are limited by the IRS based on your age, income, and IRA type. Depending on the type, contributions are pre-tax or after-tax.

Traditional IRA

Contributions are pre-tax and may be deductible depending on your income and workplace-plan coverage. Withdrawals in retirement are taxed as ordinary income.

Roth IRA

Contributions are after-tax and not deductible, but qualified withdrawals in retirement are tax-free. A Roth IRA makes sense if you expect a similar or higher tax rate in retirement. Direct contributions are subject to income limits.

Rollover IRA

A rollover IRA holds money moved out of a former employer's plan, such as a 401(k), while keeping its tax-deferred status. To do it, contact your old provider and complete a direct rollover to your new provider.

Spousal IRA

A spousal IRA lets a non-working or low-earning spouse contribute to an IRA using the working spouse's income. You must be married and file jointly. For 2026, each spouse can contribute up to $7,500 ($8,600 if 50 or older), as long as combined earned income covers both.

SEP IRA

A Simplified Employee Pension IRA is for self-employed people and small businesses. Contributions are tax-deductible and grow tax-deferred, with distributions taxed as ordinary income. The 2026 limit is the lesser of 25% of compensation or $72,000.

SIMPLE IRA

A Savings Incentive Match Plan for Employees IRA is for employers with 100 or fewer employees (earning at least $5,000 in a prior year) and the self-employed. Unlike a SEP, employees can contribute. The 2026 employee limit is $17,000, plus a $4,000 catch-up at 50 or older ($5,250 for ages 60 to 63). Businesses with 25 or fewer employees can use a higher $18,100 limit.

Other retirement plans

Thrift Savings Plan (TSP)

The TSP is a defined contribution plan for federal employees and uniformed servicemembers, much like a 401(k). You choose among a small set of index funds. The government adds an automatic 1% of pay and matches contributions up to another 4%, for a maximum 5% agency contribution.

Traditional pensions

A pension is an employer benefit that pays a fixed monthly amount for life after retirement, funded from a pool the employer manages. Also called defined benefit plans, pensions have become rare in the private sector, where most companies switched to 401(k)s that shift investment risk to the employee.

Cash balance plans

A cash balance plan is a defined benefit plan that often allows a lump sum instead of an annuity. The employer credits a set percentage of pay to a hypothetical account each year, plus interest credits. Your payout depends on your salary history, years of service, and the interest credited.

Cash value life insurance

Some permanent life insurance policies (whole, universal, variable universal, indexed) build cash value alongside the death benefit. Part of each premium funds the insurance and part goes to the cash value, which you can borrow against or withdraw while living, though doing so reduces what your beneficiaries receive.

Choosing the right plan for you

The right plan depends on your situation: whether you own a business, whether you're married, and whether you've maxed your 401(k). A few principles hold for almost everyone:

• Take any employer match first. If your plan matches 4%, contribute at least 4% so your total is 8%.
• Once you've hit the 401(k) limit, add an IRA (traditional or Roth), then a taxable brokerage account.
• Having several account types is allowed and encouraged; it gives you flexibility on taxes in retirement.
• Consult a financial advisor, preferably a fiduciary, to set the order for your situation.

How to maximize your retirement savings

1. Take any employer-sponsored plan and get the full match.
2. Open an IRA for savings beyond the match. Consider a Roth if you expect a similar or higher tax rate in retirement (subject to income limits).
3. Automate contributions so the money moves before you can spend it.
4. Review your budget for room to save more.
5. Delay Social Security if you can. Benefits grow about 8% for each year you wait past full retirement age, up to age 70. Delayed retirement credits stop accruing at 70, so there's no gain from waiting past then, but you are not required to claim at 70.
6. Keep your 401(k) with you when you change jobs by rolling it into an IRA or your new employer's plan.

Questions to ask an advisor

If you work with an advisor, come prepared with the right questions and a clear sense of your goals.

Should I invest in a 401(k) when there's a company match?

Always, if it's available. It's the closest thing to free money. If your company matches up to 3% and you contribute 3% of a $50,000 salary ($1,500), the match adds another $1,500. Invested at a 7% return with 3% annual raises, that's roughly $316,000 after 35 years without the match, and about $622,000 with it.

How do I choose between an IRA and a 401(k)?

For most people the workplace 401(k) comes first, especially with a match: the contribution limit is higher ($24,500 versus $7,500 for an IRA in 2026), and traditional 401(k) contributions are pre-tax. Once you hit the 401(k) limit, adding an IRA is a sound next step.

How much can I contribute to my 401(k) each year?

For 2026, the 401(k) employee limit is $24,500, or $32,500 if you're 50 or older with the catch-up ($35,750 for ages 60 to 63). Employer contributions do not count toward your personal limit.

How much should I have saved at each age?

Your target depends on the retirement you want, not your neighbor's. You can compare against average retirement savings by age, but the more useful move is to set your own number with a qualified financial advisor and start saving as early as you can.

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