Individual Retirement Arrangements (IRAs) An individual retirement arrangement (IRA) is a personal savingsplan that allows you to set aside money for your retirement or forcertain education expenses. You do not have to set up IRAs for youremployees or make contributions for them. You may be able to deductyour contributions, depending on the type of IRA and yourcircumstances. Generally, amounts in an IRA, including earnings andgains, are not taxed until they are distributed. In some cases, yourearnings and gains may not be taxed at all if they are distributedaccording to the rules. For more information on IRAs, see Publication 590.