> For the complete documentation index, see [llms.txt](https://ira-guide.gitbook.io/the-only-ira-guide-youll-ever-need/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ira-guide.gitbook.io/the-only-ira-guide-youll-ever-need/intro-to-iras.md).

# Intro to IRA's  🛎️

**Introduction**

You may have heard of a **Roth IRA** or **Traditional IRA** but never fully understood what these terms mean.

But don’t worry—**you don’t need an MBA in finance** to take advantage of the benefits of having an IRA account.

An **Individual Retirement Account (IRA)** is a specific type of investment account designed to help individuals **save for retirement**. The two most common types of IRAs are:

* **Traditional IRAs**
* **Roth IRAs**

#### **What Makes an IRA Different?**

What separates **IRA accounts** from regular investment accounts is that they come with **valuable tax advantages**:

✅ **Traditional IRAs** – Best for individuals who expect to be in a **lower tax bracket** in retirement and want to **reduce their taxable income now**.

✅ **Roth IRAs** – Most beneficial for those who expect to be in a **higher tax bracket** later and want to enjoy **tax-free income in retirement**.<br>