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What is an Individual Retirement Account (IRA)?

Definition, 5 Types - NerdWallet An individual retirement account (IRA) is a retirement investment account. IRAs can offer tax deductions or tax-free withdrawals, depending on the type of account.

What is an IRA & how does it work?

IRA stands for Individual Retirement Account. It’s an account that you open, contribute to and own independently with the brokerage of your choice. This gives you greater access and control over your own retirement account than an employer-sponsored retirement plan like a 401 (k).

What should you consider when investing in a retirement IRA?

Below, we detail some criteria to keep in mind: Low-cost investments: For long-term retirement savings success, make sure high fees don’t eat into your investment returns. Open your IRA at a broker or robo-advisor that offers low-cost investments. For many retirement investors, a smart investment is a low-cost mutual fund.

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