What is an IRA ?
An Individual Retirement Account
The IRS says it is an
Individual Retirement Arrangement.
What is an IRA for?
In plain language, an IRA is used to put money, stocks, bonds, mutual funds, real estate, etc., away while earning interest for the rainy day of retirement.
Meanwhile you are avoiding a lot of taxes either when you contribute or when you take distributions.
You open the IRA yourself.
It is one way of guaranteeing that you'll have something to live on after retirement.
There are IRAs for small business owners.
Self employed individuals can open an IRA.
The 401K plans are not the same as an IRA.
Below are some links to IRA Information Pages