Individual Retirement Account (IRA)

IRA accounts are tax-qualified retirement savings vehicles that incentivize saving for retirement by offering tax-deductions and/or deferral. The two main types of IRAs – Traditional and Roth – have different tax rules. For Traditional IRAs, taxes are paid when the money comes out, whereas for Roth IRAs, taxes are paid when the money goes in. Both require you to wait until age 59½ to start taking withdrawals. Additionally, Traditional IRAs are subject to Required Minimum Distributions.