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to contribute pretax earnings up to a maximum yearly allowance and to defer income taxes until the money is withdrawn after retirement.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

Beyond that, older adults can make a contribution to a traditional, pretax individual retirement account.

From Barron's

This gives I bonds a quality like an individual retirement account.

From Barron's

In the Fix My Portfolio column, Beth Pinsker incorporated the new tax rates into instructions on how to decide whether or not to move money from a traditional individual retirement account into a Roth IRA.

From MarketWatch

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