If you participate in a 401(k) or other employer-sponsored retirement plan (457, 403b, SIMPLE IRA, SEP IRA) you may already be investing in mutual funds. Fund shares are purchased for you according to the rules of the plan. Employees contribute to their retirement plan with pre-tax dollars, reducing the amount of tax paid out of each pay check. If your employer makes matching contributions, it’s like getting a salary increase. And employer contributions and the capital increases in the plan grow tax-free until withdrawal.

Recent changes to the tax laws increase your opportunities to invest and raise the limits on many common retirement vehicles such as IRAs and 401(k)s. See the Retirement Center and IRA Center on this site for more information.