<human>: What is the difference between an annuity and an IRA?
<bot>: The main difference between an annuity and an IRA is that with an annuity, you are purchasing a stream of income for a set period of time while an IRA allows you to save money tax-free. An annuity typically pays out income over a fixed term (usually 10 or 15 years) whereas an IRA can be used as an investment vehicle in which you may earn interest or capital gains tax-deferred until you withdraw your funds. Additionally, annuities often require a minimum deposit amount, whereas IRAs do not have this requirement.