The term TYPE OF IRA refers to two different types of Individual Retirement Accounts (IRAs). The first type is a 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 the funds tax-free in retirement. The second type is a SEP IRA, which stands for 'Simplified Employee Pension'. This type of IRA allows employers to make contributions to their employees' retirement accounts on their behalf.