An IRA, or individual retirement account (or individual retirement arrangement, as the IRS calls it), is basically a tax-advantaged investment account designed to help you save for retirement.
An IRA is the best way to invest your money to take advantage of tax breaks, whether you receive them upfront (with a traditional IRA) or when you withdraw your money tax-free later in life (as with a Roth IRA). Those tax benefits come with some restrictions, however, and you’ll generally incur a penalty if you withdraw funds from a traditional IRA before you’re 59.5 years old.
An IRA is the best way to invest your money to take advantage of tax breaks, whether you receive them upfront (with a traditional IRA) or when you withdraw your money tax-free later in life (as with a Roth IRA). Those tax benefits come with some restrictions, however, and you’ll generally incur a penalty if you withdraw funds from a traditional IRA before you’re 59.5 years old.
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