An IRA is a tax-advantaged retirement account with two main types: traditional IRAs offer tax-deductible contributions and tax-deferred growth, while Roth IRAs use after-tax contributions with tax-free growth and withdrawals. The 2025 contribution limit is $7,000 ($8,000 for those 50+). IRAs allow diverse investments and early withdrawals before 59½ incur taxes and penalties, with exceptions. They benefit those without workplace plans and can be opened online quickly.