A traditional IRA (Individual Retirement Account) is a type of retirement savings account that allows individuals to contribute money that can be deducted from their taxable income. This means that contributions to a traditional IRA can lower your taxable income for the year in which you make the contribution, effectively allowing you to save on taxes. The money in a traditional IRA grows tax-deferred until it is withdrawn, typically during retirement when the individual may be in a lower tax bracket. In contrast, a Roth IRA is funded with after-tax dollars, meaning contributions are not tax-deductible, but withdrawals during retirement are tax-free. Therefore, the correct answer to the question is a traditional IRA.