An individual retirement account or IRA is a type of investment account designed to help you invest money for retirement in a tax efficient manner. IRA’s have annual contribution limits as well as income limits (determining if your contribution is tax deductible) updated annually by the IRS. There are two types; traditional and Roth. These have different tax advantages and rules. Anyone with an earned income (employment salary, not investment income or social security) or spouse with earned income can contribute to an IRA. IRA’s can be opened at banks, online or with investment professionals.