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IRAs are one tool in the retirement planning toolbox

by IRS

IRAs are one tool in the retirement planning toolbox

There are many ways people plan for retirement. Individual Retirement Arrangements, or IRAs, are a common one. IRAs provide tax incentives for people to make investments that can provide financial security when they retire. These accounts can be with a bank or other financial institution, a life insurance company, mutual fund, or stockbroker.

Here are some things to know about a traditional IRA.
A traditional IRA is a tax-advantaged personal savings plan where contributions may be tax deductible.

Roth IRAs are like traditional IRAs, but there are some important differences.
A Roth IRA is another tax-advantaged personal savings plan with many of the same rules as a traditional IRA but there are exceptions:

Here are a few other types of IRAs: