Definition
A retirement account you open yourself, separate from any employer, with tax advantages.
The story
With a traditional IRA, contributions may be tax-deductible and withdrawals are taxed later. With a Roth IRA, you pay tax on the money now, and qualified withdrawals in retirement are tax-free. The IRS (Internal Revenue Service) sets yearly contribution limits and income rules.
Why markets watch it
IRAs let people without a workplace plan, or who want more, invest for retirement.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms