Individual Retirement Account

(redirected from Individual Retirement Arrangements)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial.

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 IRA monies may be placed in high-yield investments, with taxation deferred until money is withdrawn after retirement.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 ?
Taxpayers with Individual Retirement Arrangement (IRA) Plans, by Type of Plan, Tax Year 2004 [All figures are estimates based n thousands of dollars] on samples--money amounts are in thousands of dollars] Total contributions [1] Type of plan Number Amount (1) (2) Total 14,706,060 48,728,654 Traditional IRA plans 5,305,442 12,632,543 SEP plans 1,571,637 13,757,176 SIMPLE plans 1,935,896 7,621,057 Roth IRA plans 6,657,635 14,717,878 Contributions deducted on Form 1040 Type of plan Number Amount (3) (4) Total 5,587,535 20,245,616 Traditional IRA plans 4,011,681 10,028,607 SEP plans 920,770 7,923,068 SIMPLE plans 733,163 2,293,941 Roth IRA plans n.
2] See Publication 590, Individual Retirement Arrangements (IRA's) (Including Roth IRA's and Education IRA's), Internal Revenue Service, Department of the Treasury, for more information on eligibility requirements and limitations.
The 15% excise tax applied to excess distributions from qualified retirement plans, tax-sheltered annuities and individual retirement arrangements (IRAs).
Neither ERISA nor IRS protections apply to assets held under individual retirement arrangements (including SEPs and SIMPLE IRAs), government plans, or most church plans.

Full browser ?