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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- Roth IRA - money is taxed before deposit, and then accumulates interest tax free, and can be withdrawn tax free.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- Traditional IRA - money is deposited before tax, money accumulates interest tax free until withdrawn at retirement, at which point the money is taxed.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.