IRA Plan

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.

BREAKING DOWN '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 FAQS
  1. I want to take advantage of retirement savings. Can I contribute $6K to a Roth IRA, ...

  2. How do I save for retirement as a self-employed individual?

    What are my options for saving for retirement? I was thinking about starting an IRA. ... Read Answer >>
  3. Should I set up a Roth IRA or a traditional IRA?

    I recently left my place of employment because I had moved out of state. At my place of employment we had a 401k plan. ... Read Answer >>
  4. What is the difference between a ROTH, SEP and Traditional IRA?

    The Roth IRA was established in 1996 as the newest addition to the individual retirement accounts (IRAs) available to individuals. ... Read Answer >>
  5. Can an individual contribute to both a Roth IRA and a Traditional IRA in the same ...

    Yes, an individual can contribute to both a Roth IRA and a Traditional IRA in the same year. The total contribution into ... Read Answer >>
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