human
What are the different types of IRAs and how do I choose one?
assistant
The most common type of IRA is a Traditional IRA. This allows you to save pre-tax money, meaning that your contributions will be taxed at your current income tax rate when you withdraw them in retirement. A Roth IRA is similar but with one key difference - the earnings on the account are not subject to taxes when withdrawn. Another option is an SEP IRA, which is designed for self-employed individuals and offers certain tax benefits. Finally, there is a SIMPLE IRA, which is designed specifically for small businesses and offers more flexibility than other IRAs.