Finance glossary
Individual Retirement Account (IRA)
Definition
A tax-advantaged personal retirement account.
An IRA is a retirement account individuals open on their own, separate from an employer, with tax benefits. Traditional IRA contributions may be deductible and grow tax-deferred, with withdrawals taxed later. Annual contribution limits apply.
In a sentence
She opened an Individual Retirement Account (IRA) on her own to save for retirement with tax-deferred growth.
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