IRA (Individual Retirement Account)
Definition
A tax-advantaged retirement account for individuals. Traditional IRA contributions may be tax-deductible with taxed withdrawals. Roth IRA contributions are after-tax with tax-free withdrawals. 2026 limit: $7,000 ($8,000 if 50+).
Related Terms
401(k)
An employer-sponsored retirement savings plan that allows employees to contribute a portion of their pre-tax salary. Many employers match contributions up to a certain percentage. The 2026 contribution limit is $23,500 ($31,000 if over 50).
Roth IRA
A retirement account funded with after-tax dollars. Investments grow tax-free, and qualified withdrawals in retirement are completely tax-free. Ideal for those who expect to be in a higher tax bracket in retirement. Income limits apply.
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