Traditional IRA
An IRA where contributions may be tax-deductible now, and withdrawals in retirement are taxed as income.
If you qualify, contributions to a traditional IRA lower your taxable income this year. Whether you can deduct them depends on your income and whether you or your spouse have a retirement plan at work.
Money grows tax-deferred, then withdrawals are taxed as ordinary income. Taking money out before age 59½ usually adds a 10% penalty, with exceptions. You must start required withdrawals in your 70s, and the exact age depends on your birth year.