human
What is the difference between an annuity and an IRA?
assistant
An annuity is a type of financial product that provides income for a set period of time. It typically involves payments made to you over time, either as a lump sum or periodic payments. An IRA (Individual Retirement Account) is a retirement savings vehicle that allows individuals to save for retirement. Contributions to an IRA are tax-deductible and withdrawals from an IRA are taxed at the lower of the current income tax rate or the individual's tax rate in effect when the money was withdrawn.