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Retirement may be decades away, but it's never too early to start investing, even just a small amount at a time.

Your action plan

Make the most of your 401(k) employer match

If your employer offers a 401(k) plan and will match your contributions, don't leave that "free money" on the table! Because contributions are taken from your pay before your employer withholds income tax, you may be able to reduce your tax bill, and more of your money will be able to go to work for you.If your employer doesn't provide a match, it's still important to invest as much as you can now and let your earnings have an opportunity to work in your favor.Read: 10 tips to help you boost your retirement savings – whatever your age

Consider opening an individual retirement account (IRA)

You may want to think about opening an IRA in addition to or instead of a 401(k) plan if your employer doesn't offer one. Even if you have a 401(k), you may have more investment choices through an IRA.Whether you choose a Traditional or Roth IRA will depend largely on your income and age. (If you're a small business owner, you may also be able to contribute to a small business IRA).

Traditional IRA

Your contributions can grow tax-deferred (you don't pay taxes until you take a distribution, unless you've made a non-deductible contribution). Contributions may also be tax deductible.

Roth IRA

Contributions are made on an after-tax basis; future withdrawals on contributions and earnings are generally federal tax-free if you meet certain criteria.Footnote 1Compare IRAs to see what's right for you. If you open an IRA, our automatic investment plan makes it easy to invest a small amount on a regular schedule, automatically.Footnote 2Get started: Find the right IRA

Looking for more ways to save & invest? Max out your 401(k)

If you're able to save and invest more, keep it going and make additional contributions to your 401(k). This could set you on a good track for the future and reduce your income tax burden even more. You can also contribute to an IRA.View the most current 401(k) and IRA contribution limits.

Our Perspectives

Get insights from Merrill to help you plan and invest for retirement.See Our Perspectives

Changing jobs?

You now have choices for what to do with your 401(k).3Learn more about changing jobs

Plan by life stage

Learn more about investing for this phase of your life.See Starting OutReady to get started?Open an account888.637.3343Find a local Merrill Financial Solutions Advisor™Helpful tools & resourcesHow much could you need to retire?Personal Retirement CalculatorGet your personal retirement number with our easy-to-use retirement calculatorLearn about IRAsTraditional IRAEnjoy tax-deferred growth and contributions that may be tax-deductibleRoth IRAEarnings grow tax-free; withdrawals are federal income tax-free and, in some cases, state tax-free if you meet certain criteria1Traditional or Roth IRA?Learn which IRA might be right for youNew to investing?See how we can helpReady to get started?Open an account888.637.3343 Find a local Merrill Financial Solutions Advisor Looking for a different approach to investing?An investment advisory program that combines the best features of online investing with a professionally managed portfolio.Footnote 1