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individual retirement account
(redirected from Individual Retirement Arrangements)

   Also found in: Medical, Legal, Financial, Encyclopedia, Wikipedia 0.01 sec.
individual retirement account
n. Abbr. IRA
An investment account in which a person can set aside income up to a specified amount each year and usually deduct the contributions from taxable income, with the contributions and interest being tax-deferred until retirement.
ThesaurusLegend:  Synonyms Related Words Antonyms
Noun1.individual retirement account - a retirement plan that allows you to contribute a limited yearly sum toward your retirement; taxes on the interest earned in the account are deferred


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See page 17 of IRS Publication 590, Individual Retirement Arrangements, for a list of the deductions that are added back to your AGI to produce your modified AGI, which is used to determine whether you can qualify for the IRA conversion.
If the spouse is not the beneficiary or upon the spouse's death (if the spouse is the beneficiary), subsequent beneficiaries would be required to take minimum distributions based on life expectancy using Table I (Single Life Expectancy) found in Appendix C of IRS Publication 590, Individual Retirement Arrangements (IRAs).
These accounts are also known as Individual Retirement Arrangements or Individual Retirement Annuity.
 
 
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