Many people I know are saving for retirement in either an IRA, a 401(k), or a combination of both. And that's not a bad thing at all.

IRAs and 401(k)s come with different tax benefits. Traditional IRAs and 401(k)s give you a tax break on the money you put in, and investments get to grow on a tax-deferred basis. Roth IRAs and 401(k)s offer the benefit of investment gains that are completely tax-free, as well as tax-free withdrawals.

But while it certainly pays to take advantage of IRAs and 401(k)s, there's a lesser-known retirement account that should be on your radar. Forgetting about it could mean missing out big time.

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Source Fool.com