An Individual Retirement Account (IRA) is a personal savings plan that provides income tax advantages to individuals saving money for retirement purposes.
What's the difference between a Traditional IRA and a Roth IRA?
A Traditional IRA may allow you to deduct contributions on your income taxes now and pay the taxes when you make qualified withdrawals in retirement. There is no income eligibility limit to contribute.
A Roth IRA offers the opportunity for federally tax-free growth and withdrawals. There are income and eligibility requirements.
The maximum IRA contribution for 2009 and 2010 is $5000 depending upon your income. For more information I have provided these links.