IRA Plan

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DEFINITION of 'IRA Plan'

A plan that individuals may establish to arrange and plan for retirement. Generally, an IRA plan allows you to save money and defer taxes until you retire. IRA plans have annual contribution limits that are established by the government and rise gradually with inflation; individuals age 50 and older can make slightly higher "catch-up" contributions.

INVESTOPEDIA EXPLAINS 'IRA Plan'

Individual retirement account plans come in several forms: the traditional IRA and the Roth IRA for individuals, and the SEP IRA and the SIMPLE IRA for the self-employed (self-employed individuals may still use traditional or Roth IRAs). Each plan has different rules regarding taxation and withdrawals. The tax advantages of these types of accounts make them valuable as retirement savings tools.

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Related Articles
  1. Retirement

    Why should I open an IRA?

    Understand the benefits of an IRA, how it enables you to increase retirement savings and how funds can be used before retirement without additional taxation.
  2. Retirement

    Where can I open an IRA?

    Open an IRA through brokerage firms, mutual funds, banks and other major financial institutions, or through large Internet financial brokerages.
  3. Options & Futures

    Who is eligible to open an IRA?

    Individuals employed by an employer are eligible to open a traditional IRA if they receive bonuses, wages, commissions and salaries
  4. Retirement

    What is the difference between a 408 (k) plan and a 401 (k) plan?

    Learn key differences between 401(k) and 408(k) plans. Employers provide different options to help employees save for retirement, depending on company size.
  5. Retirement

    If I contribute to a 401(k) plan, can I still contribute to an individual retirement account (IRA)?

    Participating in your employer's 401K plan can reduce or prohibit IRA contributions for your family depending on your spouse's participation and your income.
  6. Taxes

    Tax Treatment Of Roth IRA Distributions

    Learn the requirements for withdrawing funds tax and penalty free.
  7. Retirement

    Is it wise to put an IRA account into a fixed or variable annuity?

    The answer to this depends on an individual's investment goals, requirements and risk tolerance. During the 1990s, the majority of seasoned financial planners would tell you that it's not a wise ...
  8. Retirement

    Traditional IRA Deductibility Limits

    Find out where you can take a tax deduction on the contributions you make.
  9. Taxes

    Tax Treatment Of Ineligible IRA Rollovers

    Eager to save for retirement? Learn how to avoid overpayment penalties.
  10. Taxes

    How To Correct Ineligible (Excess) IRA Contributions

    Eager to save for retirement? Learn how to avoid overpayment penalties.

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