IRA, or Individual Retirement Arrangement, is basically a savings account with big tax breaks, which makes it ideal for saving toward your retirement. It is an account type that lets you put in different security types like stocks, bonds, mutual funds and other assets.
IRAs are not set up by employers like 401(k) plans are – instead they are set up by an individual and allow you flexibility and control over the management of funds. There are many types of IRA accounts, all with different rules and eligibility requirements. You can find more information on the types of retirement accounts here.