About the Traditional IRA. A traditional IRA, or Individual Retirement Arrangement (Account), is a savings account into which you can make tax deductible contributions towards your retirement. Earnings from the account aren’t taxed until you withdraw them.his is just the opposite of a Roth IRA, which can’t save you tax money now, but will save you money on your taxes in retirement. The money in the account can be invested in a variety of things to suit your risk level: money market accounts, bonds, mutual funds, etc.