individual retirement account

American  

noun

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

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Individual Retirement Account Cultural  

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to contribute pretax earnings up to a maximum yearly allowance and to defer income taxes until the money is withdrawn after retirement.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

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Example Sentences

A market dip is prime time for converting some assets in your regular individual retirement account to a Roth IRA.

From Barron's • Mar. 21, 2026

Last year’s law also introduced a new type of individual retirement account called a Trump account.

From The Wall Street Journal • Jan. 26, 2026

If you have an individual retirement account, your contribution limit for 2026 is $7,500, with an additional $1,100 catch-up contribution allowed if you are 50 or older.

From MarketWatch • Dec. 26, 2025

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 • Jul. 8, 2023

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 • Mar. 13, 2023