Individual Retirement Account (IRA)

Definition

An individual retirement account is a tax-advantaged account that individuals can open to save for retirement independently of an employer. Traditional IRAs offer tax-deductible contributions with taxes due upon withdrawal, while Roth IRAs use after-tax contributions with tax-free qualified withdrawals. Annual contribution limits apply, and the deductibility and eligibility rules depend on your income and whether you have access to a workplace retirement plan.