The risks of IRAs include:  With a traditional IRA, if you need to withdraw your money before age 59½, then you’ll pay a 10% early withdrawal penalty on the amount withdrawn, as well as income tax. There are a few situations where the penalty is waived, such as using the funds to pay your medical insurance premium after a job loss. The Roth IRA also has additional caveats for early withdrawals. Ultimately, unless you are using a robo-advisor, you have the sole responsibility of choosing investments and managing them. You might not have the skill or expertise to choose the best investments for you.  Some IRA custodians prey on unsuspecting investors by charging excessive fees and selling you inappropriate and possibly fraudulent investments.  Your income might surpass the legal contribution limit, leaving you ineligible to contribute.  If you invest in a traditional IRA, there is a risk that in retirement, you’re in a higher tax bracket than when you were working.  In retirement, traditional IRA holders are required to take RMDs from the account, which will increase your income taxes.