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What are the best ways of Investments for beginners?
How do those accounts work?
A tax-advantaged retirement account allows you to save money for retirement while also receiving tax benefits. In a traditional IRA or 401(k), contributions are made with pre-tax dollars, meaning you'll pay less in taxes now, but will be taxed on withdrawals in retirement. In a Roth IRA or Roth 401(k), contributions are made with after-tax dollars, so you won't receive an upfront tax break, but your withdrawals in retirement will be tax-free.