Behshad Yavarzadeh photos in the U.S.

For example, once you start saving, you can use a portion of your funds to max out your Roth IRA every year to accumulate tax-free income during retirement. The key here is to invest the money in your retirement account to score big returns. The IRS will even give you a bonus — the saver’s credit — for saving toward retirement, which can put up to $1,000 or $2,000 back in your pockets in 2021 if you earned a modest income.