When it comes to retirement accounts, 401(k) plans usually dominate the discussions. For many people, it's the retirement account. A 401(k) rightly earns its spotlight, but it's not the only show in town. An IRA is just as good an option -- and in many cases, it's even better.

A traditional IRA is similar to a 401(k) because contributions could potentially lower your taxable income. Whether your contributions are tax-deductible depends on your income, filing status, and whether or not you're covered by a retirement plan at work. Contributions to a Roth IRA are after-tax, but your withdrawals are tax-free in retirement as long as other requirements are met.

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Source Fool.com