IRA
Definition
Individual Retirement Account. A tax-deferred retirement account for an individual that permits individuals to set aside money each year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). The exact amount depends on the year and your age. IRAs can be established at a bank, mutual fund, or brokerage. Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis. Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn. A participant is able to roll over a distribution to another IRA or withdraw funds using a special schedule of early payments made over the participant's life expectancy.
Cite this definition
'IRA
' appears in the definitions of these terms on BusinessDictionary.com
controlled foreign corporation (CFC), individual retirement account (IRA), Keogh plan
Related Research Articles from the InvestorGuide.com University
AnnuitiesLearn all you need to know about annuities. Includes a description of fixed, variable, and equity-indexed annuities, with emphasis on taxes, distributions, payments, and fees of each.
IRAsThinking of starting an Individual Retirement Account, or looking for more information on one you already have set up? This article includes information on setting an IRA up, some common yet often confusing IRA terminology, converting an IRA, and rolling an IRA over.
Roth IRANot satisfied with a typical IRA? Learn all you need to know about Roth IRAs, including information on contributions, withdrawals, conversions, distributions, and recharacterizations.
Featured Sponsor
|