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individual retirement account
(redirected from Individual Retirement Arrangement)

   Also found in: Dictionary/thesaurus, Legal, Financial, Acronyms, Encyclopedia, Wikipedia 0.03 sec.
individual retirement account (IRA),
n a savings certificate exempt from income tax until the time of withdrawal. There are limits to the amount that can be saved annually under this plan, and there are conditions of withdrawal for maximal interest and tax advantage.


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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).
A simple Individual Retirement Arrangement, also called an Individual Retirement Account (IRA), also can provide an easy means of ensuring your employees' future retirement income.
 
 
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