Individual Retirement Account


Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Acronyms, Wikipedia.
Related to Individual Retirement Account: Roth Individual Retirement Account

Individual Retirement Account

(IRA), tax-sheltered retirement plan, originally created (1974) to assist individuals not covered by company pensions. Under the U.S. tax law of 1981, IRA provisions were liberalized to allow individuals to contribute up to $2,000 per year (up from $1,500) to such accounts, and coverage was extended to employees already in corporate pension programs. These contributions are deductible from federal income taxincome tax,
assessment levied upon individual or corporate incomes. Although personal incomes were occasionally taxed in medieval Italian cities, the income tax is essentially a modern form of taxation.
..... Click the link for more information.
 payments. IRA monies may be placed in high-yield investments, with taxation deferred until money is withdrawn after retirement. In 1998, Congress instituted the Roth IRA, in which the earnings are tax-free but there are no tax-deduction benefits for the contributions made each year.
Mentioned in ?
References in periodicals archive ?
Investors who reveled in this year's bull market have a few more things to cheer about: A cut in the capital gains tax rate, changes in laws on individual retirement accounts to allow more people to claim a tax deduction, and the Roth IRA.
The limitation for contributions to an individual retirement account (IRA) is generally equal to the lesser of $2,000 or 100% of compensation includible in gross income.
What we're really talking about is taking some small part of Social Security and allowing people to invest it'' in an account similar to an Individual Retirement Account or 401(k).
In October 1989, Dwyer withdrew over $2(n1,000 from his individual retirement account to solve his financial problems.
C) You may instruct the company to roll over the funds into an individual retirement account (IRA), which you selected to defer taxes and avoid the 20% withholding tax.
The bullet can be dodged if you are operating within an individual retirement account, Keogh plan, employer-sponsored 401(k) account or some other tax-deferred retirement savings program.
The case began when the plaintiff, LaVon Barrett; received a distribution from her family's corporate retirement plan after her husband's death and invested it in an individual retirement account managed by a financial planner, Donald Hall.
Or you can opt to defer a portion of your taxable income by opening an Individual Retirement Account.
In Chile, for example, employees must pay 10 percent of their wages toward an individual retirement account.
Resembling a combined individual retirement account and 401 (k) plan, it would be available to employees who are at least 21 years old and have completed two years of service with the company.
can be rolled over tax free into an individual retirement account (IRA).

Full browser ?