An individual retirement account (IRA) is a personal savings plan that helps Americans save for retirement while providing tax benefits. There are various types of IRAs, including Traditional and Roth IRAs, which can be opened through financial institutions. For 2025, individuals can contribute up to $7,000 to a traditional IRA if they are under 50, and up to $8,000 if they turn 50 or older during the year, provided they or their spouse have earned income.
