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LeoGlossary: Individual Retirement Account (IRA)

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leoglossary@leoglossary
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10 months ago - 1 minutes read

A savings account under US tax code which provide advantages on contributions and distributions.

Money in IRAs cannot be withdrawn before 59 1/2 without penalty.

There are a number of different kinds of IRAs.

  • Traditional IRAs
  • Roth IRAs
  • Simplified Employee Pension (SEP) IRAs
  • Savings Incentive Match Plan for Employees (SIMPLE) IRAs

IRAs are designed to be long-term retirement savings plans. There are certain limitations on what can be contributed each year. This is based upon age and, in some instances, income.

General:

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