An IRA stands for Individual Retirement Account and IRA is considered to be a savings account that can give you big tax breaks therefore making it a perfect way to put away money for your retirement. An IRA is sometimes mistaken for an investment, but really it is a place that you can keep your stocks, bonds, mutual funds and any other assets together. There are many types of IRAs, which have their own tax implications and eligibility requirements. An IRA allows you to take a tax deduction for the money that you put into your IRA account. The deduction permits you to reduce your taxable income, so you are not paying a tax on the income that you have set aside. An IRA lets you grow your savings tax-deferred. When you decide to take the money out from your IRA, the income that you are withdrawing will be counted as taxable income. The income is taxed as ordinary income. Overall, there are restrictions on who can take the deduction from your IRA. If you need information about all of the options for an IRA account, you will need to consult an investment company. An investment company can go over all of the IRA options that can be available to you.