A savings account under US tax code which provide advantages on contributions and distributions.
Money in IRAs cannot be withdrawn before 59 1/2 without penalty.
There are a number of different kinds of IRAs.
- Traditional IRAs
- Roth IRAs
- Simplified Employee Pension (SEP) IRAs
- Savings Incentive Match Plan for Employees (SIMPLE) IRAs
IRAs are designed to be long-term retirement savings plans. There are certain limitations on what can be contributed each year. This is based upon age and, in some instances, income.