Answer: An Individual Retirement Account (IRA) is a type of investment account that provides individuals with a way to save for retirement. It offers tax advantages that help individuals grow their retirement savings over time.

Answer: A Traditional IRA is a type of IRA where contributions are made with pre-tax dollars, meaning you can deduct the contributions from your taxable income in the year they are made. The earnings in a Traditional IRA grow tax-deferred until you withdraw them in retirement, at which point they are taxed as ordinary income.

Answer: A Roth IRA is a type of IRA where contributions are made with after-tax dollars, meaning you cannot deduct the contributions from your taxable income. However, the earnings in a Roth IRA grow tax-free and qualified withdrawals in retirement are also tax-free.

Answer: The choice between a Traditional IRA and a Roth IRA depends on your individual financial situation and goals. A Traditional IRA may be a good option if you expect to be in a lower tax bracket in retirement and want to reduce your taxable income now. A Roth IRA may be a better choice if you expect to be in a higher tax bracket in retirement or if you want tax-free withdrawals in retirement.

Answer: Yes, there are income limits for contributing to a Roth IRA. For the tax year 2021, single filers with a modified adjusted gross income (MAGI) of $140,000 or more and married couples filing jointly with a MAGI of $208,000 or more are not eligible to contribute to a Roth IRA.