human
I've heard that there are several different types of IRAs. What are the differences?
assistant
The main difference between an IRA and other retirement accounts is that contributions to a traditional IRA can be made with pre-tax dollars, whereas contributions to a 401(k) or similar plan must be made with after-tax money. Additionally, withdrawals from a Traditional IRA are taxed at the lower income tax rate, while withdrawals from a 401(k) or similar plan are taxed at your regular income tax rate. Lastly, Traditional IRAs have no age restrictions on when you can make contributions, whereas 401(k)s typically have an annual contribution limit.