IRA (Individual Retirement Account)
InvestingA tax-advantaged account for retirement savings, available as Traditional (tax-deferred) or Roth (tax-free growth).
Example
Example: You contribute $7,000 (2026 max) to a Traditional IRA. At the 22% bracket, you save $1,540 in taxes this year. If you invest in an S&P 500 index fund returning 8% annually, after 30 years that single $7,000 contribution grows to $70,000. Making this contribution every year for 30 years accumulates approximately $856,000.