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individuals to contribute pretax earnings up to a maximum yearly allowance and to defer income taxes until the money is withdrawn after retirement.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

Legislation currently making its way through Congress would take a sledgehammer to the massive individual retirement accounts built up tax-free by a select group of the ultrawealthy.

From ProPublica