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However, it's essential to note that IRAs come with certain restrictions regarding access to funds. Once you contribute money to an IRA, retrieving those funds before reaching retirement age can be tricky. This trade-off is intentional, as it encourages individuals to maintain discipline in their savings habits.
The IRA serves as a long-term savings vehicle, allowing individuals to leverage the benefits of tax deferral over the course of their careers. In essence, it is a government-designed framework aimed at promoting retirement savings amid the decline of traditional pension plans.