IRA
DefinitionIndividual 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qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn.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.
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IRA is ...
... part of the Retirement and Taxes subjects.
... part of the Retirement and Taxes subjects.
... an essential investing term.
Related Terms
conduit IRA, deferred account, direct rollover, Education IRA, Employee Stock Ownership Plan, ESOP, excess accumulation, excess contribution, IRA rollover, minimum distribution and
IRA appears in these other terms
Iranian Rial, SIMPLE IRA, Iraqi Dinar, stretch IRA
IRA appears in the definitions of these other terms on BusinessDictionary.com
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