What is IRA (Individual retirement arrangement)?
An IRA is a US retirement account you open yourself rather than through an employer. A traditional IRA may give a deduction now with tax on withdrawal, and a Roth IRA gives no deduction but qualified withdrawals are tax-free. One yearly limit covers all your traditional and Roth IRAs together.
Why IRA (Individual retirement arrangement) matters
It gives people without a workplace plan, or with one, a second tax-advantaged place to save for retirement.