What is an IRA?

An individual retirement account (IRA) is a tax-advantaged investment account that’s strategically designed to help individuals save for retirement. They provide individuals with a way to build a nest egg for their futures while benefiting from potential tax advantages.

There are different types of IRAs, including Traditional and Roth IRAs.

In a Traditional IRA, contributions are tax-deductible. Your earnings grow tax-deferred until the time of withdrawal. This is appealing to many investors because, at the time of retirement, tax rates may be lower.

Roth IRAs, on the other hand, are made up of after-tax contributions. This is appealing to other investors because qualified withdrawals, including earnings, are tax-free.

IRAs offer a range of investment options, including stocks, bonds, and mutual funds.