text: Individual retirement account, of which there are now two types: traditional and Roth.  Traditional IRA's allow one to contribute with tax-deductible money, but the income eventually drawn from the account will be taxed.  A Roth IRA has contributions from after-tax income, but the eventual disbursements will be tax-free.  Each has limitations on contribution levels, based on whether or not you also have a 401k, as well as rules about what age withdrawals can be made, what age withdrawals must be made, and when money can be withdrawn penalty-free.