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What is an IRA and how does it work?[a]

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An Individual Retirement Account (IRA) is a tax-advantaged investment account designed to help individuals save and grow wealth for retirement. Unlike standard brokerage accounts, IRAs offer tax benefits that allow your investments to compound more efficiently over time.

IRAs can hold a wide range of investments, including stocks, bonds, and—through a self-directed IRA—alternative assets like real estate and private investments.

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