The term IRA TYPE refers to the type of Individual Retirement Account (IRA) that an individual can open. The most common type is the ROTH IRA, which stands for 'Retirement Options Tax-Free'. This type of IRA allows individuals to make contributions with after-tax dollars and then withdraw them tax-free in retirement. Contributions are not tax-deductible, but earnings and withdrawals are tax-free. This type of IRA is popular because it allows individuals to save for retirement without having to pay taxes on their contributions or earnings.