Individual Retirement Account (IRA)

An Individual Retirement Account (IRA) is a tax-advantaged savings account designed to help individuals save for retirement. Contributions made to an IRA can reduce your taxable income, and the money grows tax-deferred until you withdraw it in retirement. There are different types of IRAs, like Traditional IRAs, which provide tax deductions on contributions, and Roth IRAs, which offer tax-free withdrawals in retirement. The goal of an IRA is to encourage long-term savings, allowing individuals to build a nest egg for their future financial security.