The 1 Account Every Retirement Saver Needs

By Maurie Backman – Feb 13, 2026 at 4:18PM ESTKey PointsRetirement savers tend to lean on IRAs and 401(k)s for the tax benefits.These accounts come with restrictions that may get in the way of your plans.It's a good idea to keep some of your nest egg in a taxable brokerage account to buy yourself more flexibility. These 10 Stocks Could Mint the Next Wave of Millionaires ›You may be surprised at how crucial this account is to your long-term plans.When I first started saving for retirement in my 20s, I did so in an IRA. At the time, my company didn't have a workplace retirement plan to offer, so I figured an IRA was my best bet. Once I got access to a 401(k) plan, I made a switch. And since that first job of mine out of college, I've funded a number of IRAs and 401(k), including the solo 401(k) I opened for myself several years ago. Image source: Getty Images. The reason I, and savers like me, are drawn to IRAs and 401(k)s is that these accounts come with pretty sweat tax benefits. Traditional IRA and 401(k) contributions go in tax-free. Investment gains, meanwhile, are tax-deferred, so you're not looking at capital gains taxes year after year. But IRAs and 401(k)s aren't perfect. So while I'm certainly a fan of using them, there's another account you should open in the course of building your retirement nest egg. You need flexibility with your money Some people opt to keep all of their retirement savings in an IRA or 401(k). That's a mistake. IRAs and 401(k)s generally impose a 10% early withdrawal penalty if you take a distribution before turning 59 and 1/2. They also force you to take required minimum distributions later in life, which can create a big tax headache. For these reasons, I firmly believe that every retirement saver should have a portion of their next egg in a taxable brokerage account. That way, you get more flexibility. Want to retire early and start tapping your portfolio at 50? Guess what? You can. Want to leave your money alone for several years in retirement and live off of your Social Security benefits instead? That's your call, and you won't have to worry about getting penalized for not taking mandatory distributions. Keep in mind that some people inevitably end up forced into retirement at a younger age than they want. In that situation, it can be downright infuriating to face early withdrawal penalties because you can't find work and need to start tapping your savings early. With a taxable brokerage account, those penalties won't be a thing. It's best to give yourself options I would never recommend saving for retirement solely in a taxable brokerage account. My point, rather, is that it pays to keep some of your money in one to buy yourself options. On my end, I usually try to max out solo 401(k) contributions and then put additional funds into a taxable account. If you can't do that, figure out how much money you can afford to save for retirement each year. Then, you may want to allocate 80% to 90% of it to an IRA or 401(k) and put the rest into a taxable brokerage account. And if you know for a fact that you want to retire early, you may want to save an even larger percentage of your money in a taxable account. Otherwise, you may find that you have to keep working not because you're short on your savings goal, but because you can't access your money without a whopping penalty.Read NextFeb 13, 2026 •By Maurie BackmanMissed Your RMD In 2025? Here's How to Minimize IRS Penalties in 2026.Feb 13, 2026 •By Kailey Hagen, CFPThis Popular Medicare Benefit Is Safe -- for NowFeb 13, 2026 •By Kailey Hagen, CFP3 Medicare Changes in 2026 Affecting Prescription Drug CoverageFeb 13, 2026 •By Christy BieberSelling Your Home After 63 Could Send Medicare Premiums SoaringFeb 13, 2026 •By Kailey Hagen, CFPStill Haven't Taken Your 2025 RMD? Here's What You Need to Do.Feb 13, 2026 •By Maurie BackmanMedicare Advantage Open Enrollment: What to Know About Switching PlansAbout the AuthorMaurie Backman is a contributing Motley Fool retirement and Social Security expert with more than a decade of experience writing about personal finance, investing, and retirement planning. Maurie previously worked in finance analyzing distressed companies. She studied finance at Binghamton University.TMFBookNerd