Individual Retirement Account

An Individual Retirement Account or IRA is a retirement plan account that provides some tax advantages for saving for retirement in the United States. There are a number of different types of IRAs, some being employer provided plans and others usually only being set up by an individual. The types include:

Correct name

The umbrella term for the concept is legally Individual Retirement Arrangement instead of account. The IRA can then either be an annuity (typically deferred) or have a trust set up that meets specific criteria the Internal Revenue Service has defined. This trust and funding by financial instruments makes it an account, and thus the term "Individual Retirement Account", the most common name by which IRAs are known. Even most professionals in the financial industry believe the common term is the correct one.

Related Topics:
Annuity - Trust - Internal Revenue Service

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