human
I've heard that there are several different types of IRAs. What are the differences?
assistant
There are two main types of Individual Retirement Accounts (IRAs): Traditional and Roth. The Traditional IRA is funded with pre-tax dollars, while the Roth IRA is funded with after-tax dollars. With a Traditional IRA, you can take advantage of tax deductions on your contributions, whereas with a Roth IRA, you cannot. Additionally, Traditional IRAs have income limitations, meaning if you make too much money to benefit from this type of account, then you should consider a Roth IRA instead.