An individual retirement account (IRA) is a type of tax-advantaged retirement account that offers a wide range of investment options.
There are two types of IRAs: traditional IRAs and Roth IRAs.
Generally, a Roth IRA is a stronger choice if you expect your tax rate to be the same or higher in retirement, because withdrawals in retirement are not taxed.
A traditional IRA makes more sense if you expect your tax rate to be lower in retirement, because contributions made now are deductible.
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These other NerdWallet resources can also help you design the retirement savings plan that’s right for you: