No matter what stage of life you're in, it is never too soon to start planning for retirement, as even the small decisions you make today can have a big impact on your future. While you might already be invested in an employer-sponsored plan, an Individual Retirement Account (IRA) allows you to save for your retirement on the side, and also potentially save on taxes. There are different types of IRAs, too, with different rules and benefits. With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½.