Which of the following is an advantage of a retirement account?

A retirement account offers tax advantages that can significantly enhance the growth of your savings over time. Contributions to many retirement accounts, such as a 401(k) or an IRA, can be made on a pre-tax basis, meaning you don't pay taxes on that income until you withdraw it in retirement. Additionally, the investments within these accounts often grow tax-deferred, allowing your money to compound without the drag of taxes until you start taking distributions. This structure encourages more substantial retirement savings by maximizing the potential growth of your investments and minimizing tax liability during your working years.

In contrast, immediate access to funds is not a feature of retirement accounts; there are usually penalties for early withdrawals. While some might argue higher spending limits could be advantageous, they do not inherently apply to retirement accounts in the same way they do for other types of accounts. The notion of insured investments against market performance isn't accurate, as retirement accounts often involve market-sensitive investments and are not guaranteed. Thus, the tax advantages render them an effective tool for retirement savings.