Individual Retirement Account (IRA) is a tax-deferred (i.e., Traditional IRA) or tax-free (i.e., Roth IRA) retirement account established by an individual that permits the individual to set aside up to a certain amount per year up to the defined contribution limit, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% IRS penalty) or, in the case of a Roth IRA, are tax-free on withdrawal.
Individuals can opens an IRA account at a financial institution such as a bank or a brokerage firm. Funds in the IRA account can be invested in investments such as stocks, bonds, and mutual funds.




