IRA

An Individual Retirement Account (IRA) is a type of savings account designed to help you save for retirement while offering tax advantages. There are two main types: Traditional IRAs, where you can often deduct contributions from your taxable income, allowing your investments to grow tax-deferred until withdrawal, and Roth IRAs, where contributions are made with after-tax money, allowing tax-free withdrawals in retirement. IRAs have annual contribution limits and specific rules about withdrawals, but they are popular tools for accumulating savings over time, helping individuals prepare for financial security in their retirement years.