An Individual Retirement Account (IRA) is a type of investment account available in the United States that allows individuals to save for retirement while receiving certain tax benefits.

Conventional IRAs and Roth IRAs are the two types of IRAs. With a Traditional IRA, contributions may be tax deductible, and earnings grow tax-deferred until they are withdrawn in retirement, at which point they are taxed as income.

With a Roth IRA, contributions are made with after-tax dollars, and earnings grow tax-free, meaning that withdrawals in retirement are not subject to income tax. IRAs have contribution limits that are set by the government, and penalties may apply for early withdrawals before the age of 59 and a half.

IRAs can hold a variety of investments, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs), among others.