| |
 |
|
A tax-deferred retirement account for an individual that permits individuals to set aside up to $4,000 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qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn.
This Glossary is provided by www.InvestorWords.com
Copyright © 1997-2005 by WebFinance Inc. All Rights Reserved.
|
|
|
|
Full Newsletter 
