What is an IRA, and how does it work?

An individual retirement account (IRA) is a type of investment account that allows you to save for retirement independently of your employer. Because IRAs aren’t tied to your job (with a few exceptions that we’ll discuss shortly), they’re a good option for self-employed people. However, you can also open an IRA to supplement your savings in a workplace account, like a 401(k) or 403(b). If you want to invest in an IRA but aren’t sure where to start, keep reading. We’ll explain all things IRAs, including th ...