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to contribute pretax earnings up to a maximum yearly allowance and to defer income taxes until the money is withdrawn after retirement.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

I used Microsoft Copilot to create a spreadsheet to estimate the tax cost of making transfers out of my individual retirement account to my Roth IRA.

From The Wall Street Journal

You can put more money than ever into your individual retirement account in 2026 — if you can afford to.

From MarketWatch

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

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