IndividualRetirementAccount
|
|
Sigma KEE - IndividualRetirementAccount
individual retirement account
|
A tax-deferred retirement account for an individual that permits individuals to set aside up to $2,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis. Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn.
|
Relationships
|
|
|
|
Parents |
pension plan |
A qualified retirement plan set up by a corporation, labor union, government, or other organization for its employees. Examples include profit-sharing plans, stock bonus and employee stock ownership plans, thrift plans, target benefit plans, money purchase plans, and defined benefit plans.
|
|
personal account |
This is the class of personal accounts, as opposed to CorporateAccounts.
|
|
savings account |
An account in a bank on which interest is usually paid and from which withdrawals can be made usually only by presentation of a passbook or by written authorization on a prescribed form.
|
Children |
rothIRA account | An individual retirement account in which a person can set aside after-tax income up to a specified amount each year. Earnings on the account are tax-free, and tax-free withdrawals may be made at retirement age. |
Show full definition (without tree view)
Show full definition (with tree view)
|