What type of investment account can an individual open to contribute money that is not taxed until withdrawal?

The traditional IRA is an investment account that allows individuals to contribute money that is tax-deferred until withdrawal. This means that you can deduct your contributions from your taxable income for the year you make them, potentially lowering your overall tax bill. Taxes are paid on the money when you withdraw it, typically in retirement, which can be beneficial since many people are in a lower tax bracket at that time.

In contrast, a Roth IRA involves contributions made with after-tax dollars, meaning you pay taxes on your contributions upfront. Withdrawals are tax-free during retirement, provided certain conditions are met. The Keith Roth IRA is a type of Roth IRA tailored for certain contributions related to special circumstances, such as disability. The SEP IRA is a simplified employee pension plan primarily geared toward self-employed individuals or small business owners, allowing them to make contributions on behalf of themselves and their employees.

Thus, the traditional IRA is distinctive because it allows deferring tax payments until retirement, making it the correct answer for this question.