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How Does an IRA Work?

Here's what you need to know about investing for retirement in an IRA.

By Motley Fool Retirement Team – Updated Nov 20, 2024 at 2:54PM

Key Points

  • Traditional IRAs allow pre-tax contributions with tax-deferred growth; withdrawals are taxed as income.
  • Roth IRAs feature after-tax contributions with tax-free growth and withdrawals.
  • SEP and SIMPLE IRAs offer higher contribution limits and are designed for small-business owners.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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