IRA (Individual Retirement Account)

An IRA (Individual Retirement Account) is a personal savings account designed for retirement. You contribute money to the IRA, often with tax advantages depending on the type (Traditional or Roth). These accounts grow over time through investments like stocks or bonds. Contributions to a Traditional IRA may be tax-deductible, reducing your taxable income now, while Roth IRAs offer tax-free growth and withdrawals in retirement. IRAs help you save systematically for the future, offering flexibility and potential tax benefits, making them a key tool for long-term financial planning.