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qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn.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
SEP and SIMPLE Plans Learn about Simplified Employee Pension Plans and Savings Incentive Match Plans for Employees. Includes information on how to contribute, who is eligible, and how withdrawals work from each.

Types of Retirement Plans There are almost too many retirement plans to keep track of. Here we explain them all. Government-sponsored plans, personal plans, annuities, employer-sponsored plans, qualified and non-qualified plans, defined-benefit and defined-contribution plans, pensions, 457 plans, and more.

Retirement Will you be finally secure during your retirement? You can increase the chances that the answer will be yes by careful retirement planning. This article describes techniques you can use to estimate how much you'll need and offers numerous tips to put you on the path to getting there. We also discuss how asset allocation should change with age, applying for social security benefits, and tax-efficient withdrawals of retirement income.

Featured Sponsor
|
|
|