Individual Retirement Account (IRAs) are accounts that you own and fund through your own contributions. Two common types of IRAs are:
- Traditional IRAs – Contributions are made with pre-tax dollars, and earnings are tax-deferred. This means that you don’t owe taxes until the funds are withdrawn, usually at retirement.
- Roth IRAs – Contributions are made with after-tax dollars, so you don’t pay taxes on the money as it accumulates.