individual retirement account

noun

1. a savings plan that offers tax advantages to an individual depositor to set aside money for retirement. : IRA

Individual Retirement Account

1. A retirement plan. The “traditional” IRA allows individuals to contribute pretax earnings up to a maximum yearly allowance and to defer income taxes until the money is withdrawn after retirement. The “Roth” IRA allows individuals to contribute aftertax earnings and pay no taxes on future withdrawals. In contrast to a 401(k) plan , an IRA is funded entirely by the individual tax payer.

Example Sentences

A Roth IRA, or individual retirement account, is another option for older grandchildren who earn money, Lindquist says.

From Seattle Times

Joseph Nye, an eminent professor emeritus at Harvard, told me that he had been thinking of donating part of his individual retirement account to Harvard when a friend suggested a community college instead.

From Seattle Times

Last month, given the choice of putting money into my individual retirement account or spending it on a French brass clock, it took about 45 minutes to choose the latter course.

From Seattle Times

Teenagers with earned income can contribute to a special retirement account known as a Roth individual retirement account.

From New York Times

A traditional individual retirement account, a Roth I.R.A. and an individual brokerage account, for example, would each qualify for a $500,000 limit at the same firm.

From New York Times