IRA: An IRA is an individual retirement account. It is a tax-advantaged investment account designed to help you save toward retirement. IRAs are one of the most effective ways to save and invest for the future. It is considered a long-term savings account that individuals with earned income can use to save for the future while enjoying certain tax advantages. An IRA is designed primarily for self-employed people who do not have access to workplace retirement accounts such as 401(k) plans, which are available only through employers.
You can open an IRA through a bank, an investment company, an online brokerage, or a personal broker.