A traditional IRA is similar to a 401K in that your contributions grow tax-deferred, and you can open an IRA regardless of your employment situation.  The amount that you contribute must equal or exceed your earned taxable income in that year.

A Roth IRA is by far the better product.

With a Roth IRAs you will make contributions with your after-tax income and then at retirement your contributions and growth are tax free once you begin your withdrawals.  Roth IRAs can be setup individually or through your employer.

With a Roth IRA – you can withdraw your contribution amounts later if needed in an emergency, however the profit must remain in the account until retirement to take advantage of the tax-free situation.

You can have both a traditional IRA and a Roth IRA at the same time (if you’re eligible) but the contribution limit is an aggregated amount among both products.

In 2024:
The IRA & Roth IRA limit = $7,000
At age 50 years = $8,000