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Define the following terms: 1 - Individual retirement account (IRA)

Define the following terms:

1 - Individual retirement account (IRA)

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Answer #1

Definition of Individual retirement account (IRA):

An individual retirement account (IRA) is a tax-advantaged investing tool that individuals use to earmark funds for retirement savings.

Investments held in IRAs can encompass a range of financial products, including stocks, bonds, ETFs, and mutual funds. An IRA must be opened with an institution that has received Internal Revenue Service (IRS) approval to offer these accounts. Choices include banks, brokerage companies, federally insured credit unions, and savings and loan associations.

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