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Individual Retirement Accounts (IRAs)

An Individual Retirement Account (IRA) is a personal savings plan that offers tax advantages for retirement savings. There are two main types: Traditional IRAs and Roth IRAs. In a Traditional IRA, you may be able to deduct contributions from your taxable income, potentially lowering your taxes now, while withdrawals in retirement are taxed. With a Roth IRA, contributions are made with after-tax money, but withdrawals in retirement are tax-free. IRAs help individuals save for retirement in a tax-efficient way and are subject to annual contribution limits and specific withdrawal rules.

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    Individual Retirement Accounts (IRAs) are savings accounts designed to help you save for retirement while offering tax advantages. There are two main types: Traditional IRAs and Roth IRAs. Traditional IRAs allow you to deduct contributions from your taxable income, deferring taxes until withdrawal, while Roth IRAs allow for tax-free withdrawals in retirement since contributions are made with after-tax income. Both types have annual contribution limits and specific rules about withdrawals. IRAs help you build a nest egg for the future, encouraging long-term savings through favorable tax treatment.