What is an IRA?

i know its a investment account of some kind but what exactly is it?

Retirement account.
the two types are :Traditional IRA (tax deferred meaning your withdrawls from account are taxed).

ROTH IRA where your deposits are taxed.

taxes depend on tax bracket you are in.

Usually people do a traditional IRA because they start putting money into the account when they are making lots of money. They choose Traditional because their payments into the account are tax deffered. When they make a lot of money they are in a high tax brackett. Then when they withdrawl from the account they are usually retired and in a low tax bracket therefor the money is not taxed so much.

People use ROTH if they anticipate being in a low tax bracket all of the time or a common example is a retired couple that is putting money into a ROTH IRA for their grand kids college fund for example

Individual Retirement Account. Offers tax benefits.

Lots of info is available if you google it.

Individual Retirement Account. It is an account you as a working individual can open. It is tax sheltered and Tax deductable.. After your 401K at work, this is the next best vehicle for saving toward the future. The best way to fund this vehicle is with a conservatively managed mutual fund. The worst way to fund and IRA is through Life insurance policies.

its a retirement account... if you get the option for this or 401k... choose the IRA. most banks/credit unions/ investment firms offer em.