IRA (individual retirement account)

A retirement account you open yourself, separate from an employer plan.

An IRA is a retirement account you open at a bank or brokerage. Anyone with earned income can usually contribute, up to a yearly limit set by the IRS.

A traditional IRA may give you a tax deduction now, and you pay tax on withdrawals in retirement. A Roth IRA is funded with money you've already paid tax on, and qualified withdrawals in retirement are tax-free. Roth IRAs have income limits.