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Tax-advantaged retirement accounts include individual retirement accounts (IRAs) and 401(k) accounts. These allow you to invest money without being taxed on its growth as long as it’s in the account. This allows you to take better advantage of compounding, where your investment earnings are added to your principal, generating a larger base so your money grows faster over time. You pay taxes on tax-advantaged retirement accounts when you withdraw money, but required minimum distributions (RMDs) don’t begin until you reach age 72 under the SECURE Act of 2019.