Individual Retirement Account

An Individual Retirement Account (legally called an Individual Retirement Arrangement) or IRA is a bank account that provides some tax benefits for saving for retirement in the United States. There are a number of different types of IRAs, including:

• Roth IRA - money is taxed before deposit, and then accumulates interest tax free, and can be withdrawn tax free. Named for William Roth
• Traditional IRA - money is deposited before tax, money accumulates interest tax free until withdrawn at retirement, at which point the money is taxed.
• SEP-IRA - for self-employed individuals.

• Internal Revenue Service