Financial Glossary
Here you’ll find clear and concise explanations of key financial terms and concepts. Our goal is to help you better understand essential topics across the financial world.
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Individual Retirement Account (IRA)
An individual retirement account (IRA) is a tax-advantaged personal savings account designed to help individuals build funds for retirement, offering benefits such as tax-deductible contributions, tax-deferred growth, or tax-free withdrawals depending on the type. There are several types including Traditional IRAs (with possible tax-deductibility and taxed withdrawals at retirement), Roth IRAs (with after-tax contributions and tax-free earnings/withdrawals), SEP IRAs, and SIMPLE IRAs (for self-employed or small businesses with differing contribution and administrative rules).