What is an IRA?
An individual retirement account (IRA) allows you to save money for retirement in a tax-advantaged way.
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A personal retirement account
An IRA is an account you open in your own name to save and invest for retirement, separate from an employer-sponsored plan.
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2
Tax advantages
IRAs offer tax benefits that can help your savings grow faster than a standard taxable brokerage account.
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3
Traditional IRA basics
Contributions may be tax-deductible depending on income and workplace plan participation. Growth is tax-deferred until withdrawal.
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4
Roth IRA basics
Contributions are made with after-tax dollars. Qualified withdrawals in retirement may be tax-free, including earnings.
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Annual contribution limits
The IRS sets yearly limits on how much you can contribute. Limits apply across all IRAs you own, not per account.
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Investment flexibility
Inside an IRA you can typically hold stocks, ETFs, bonds, mutual funds, and other approved investments depending on your provider.
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Withdrawal rules
IRAs are designed for retirement. Taking money out before age 59½ may trigger taxes and penalties, with some exceptions.
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Required minimum distributions
Traditional IRAs generally require minimum withdrawals after a certain age. Roth IRAs have different distribution rules.
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9
Rollovers from old 401(k)s
If you change jobs, you may roll workplace savings into an IRA to consolidate accounts and simplify planning.
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Who should consider an IRA
Anyone with earned income who wants additional retirement savings beyond an employer plan—or who lacks a workplace plan—may benefit.
