If you're going to save money for retirement, it's a good idea to use tax-advantaged accounts like IRAs and 401(k)s to build up your nest egg. That's because these plans offer several benefits.

With a traditional IRA or 401(k) plan, your contributions are made on a pre-tax basis. This helps to shield some of your income from taxes. Investment gains in an IRA or 401(k) are also tax-deferred, so you're not taxed year after year, but rather, only once you start to take withdrawals.

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Source Fool.com