An Individual Retirement Account, or IRA, is a personal savings account designed to help you put aside money for retirement. It’s available to almost anyone with earned income and can offer tax advantages depending on the type you choose. Traditional IRAs let you save with pre-tax dollars, which may reduce your taxable income now, but you’ll pay taxes when you take the money out later. Roth IRAs work the opposite way—you pay taxes on your money now, but withdrawals in retirement can be tax-free if certain rules are met. IRAs have annual contribution limits and income-based rules, so how much you can contribute or deduct may vary. They also allow a wide range of investment choices, including stocks, bonds, and mutual funds. Because they’re meant for retirement, there can be penalties for taking money out early unless you qualify for an exception.