• Tikiporch@lemmy.world
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      2 days ago

      An individual retirement account (IRA) is a tax-advantaged personal savings plan designed to help individuals save money for retirement. These accounts offer tax benefits, such as tax-deferred growth or tax-free withdrawals, depending on the type of IRA chosen. Unlike employer-sponsored 401(k)s, individuals typically open and manage IRAs on their own at a financial institution like a bank or brokerage. Anyone with earned income can open an IRA, even if they already have a workplace retirement plan.

        • expatriado@lemmy.world
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          2 days ago

          pre-tax “traditional” and post-tax “Roth”, named after a politician that pushed retirement tax laws 30-40 years ago

          • W98BSoD@lemmy.dbzer0.com
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            2 days ago

            And depending on where you plan to retire (amongst other factors) influences which you choose to contribute to.

            Remember kids, index funds in your IRA/401k are your friend. Stay away from mutual funds.

      • macniel@feddit.org
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        2 days ago

        Thats a self report if i’ve ever seen one. Of course did OP that one but was wondering what other thing could be behind those three letters.

        • Lena@gregtech.eu
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          2 days ago

          Nah, I didn’t notice “else” in their comment and assumed they just didn’t know about the IRA and that they thought it was exclusively some foreign thing, which is why I deleted my comment.