IRA (Individual Retirement Account)

A tax-advantaged account designed to encourage long-term retirement savings in the United States. Traditional IRAs offer tax-deductible contributions with taxes owed upon withdrawal, while Roth IRAs use after-tax contributions but allow tax-free growth and withdrawals in retirement. Annual contribution limits are set by the IRS and adjust periodically for inflation. For active traders, a Roth IRA is particularly attractive because all gains -- no matter how large -- are never taxed if the rules are followed.