An Individual Retirement Account (IRA) is a type of savings account designed to help individuals save for retirement while enjoying tax advantages. Contributions to an IRA may be tax-deductible, and the money can grow tax-deferred until withdrawal, typically after age 59½. There are different types of IRAs, including Traditional IRAs and Roth IRAs, each with its own rules regarding contributions and withdrawals. Individuals can open an IRA through various financial institutions, such as banks or investment firms. The annual contribution limit is set by the Internal Revenue Service (IRS) and may change over time. It's important for individuals to understand the rules and benefits of IRAs to effectively plan for their retirement.