What Is an IRA?
An IRA is an Individual Retirement Arrangement: a personal retirement account with tax rules that differ from an employer 401(k). The two main types are Traditional and Roth IRAs.
IRA basics
An IRA is opened by an individual rather than provided through an employer. The provider, investments, fees, contribution limits, tax treatment, and withdrawal rules all matter when comparing accounts.
The two main types
Traditional IRAs generally defer tax until withdrawal and may offer deductible contributions. Roth IRAs use after-tax contributions and may allow tax-free qualified withdrawals.
How an IRA fits with a 401(k)
Many people use both. A workplace match can make a 401(k) valuable, while an IRA can offer different investment choices or tax treatment. Compare the accounts based on your actual plan rules.
Frequently asked questions
Can I have an IRA and a 401(k)?
Yes. Having a workplace plan does not automatically prevent you from contributing to an IRA, although deductibility and Roth eligibility can be limited.
What is the IRA contribution limit?
The 2026 combined Traditional and Roth IRA limit is $7,500, with an $1,100 catch-up amount at age 50 or older, subject to IRS rules.
Sources
Gleefund explains general retirement-account concepts and provides estimates. It does not provide financial, tax, or legal advice. See our disclaimer and methodology. Check the current IRS rules before acting.
Figures current as of 2026-09-25. Found an error? Contact us.