IRA Adoption Agreement And Plan Document

AAA

DEFINITION of 'IRA Adoption Agreement And Plan Document'

A contract between the owner of an individual retirement account and the financial institution where the account is held. The IRA adoption agreement and plan document must be signed by the account owner before the IRA can be valid. It contains basic personal information about the account holder (such as address, date of birth and Social Security number) and lays out the detailed rules regarding the retirement account.

INVESTOPEDIA EXPLAINS 'IRA Adoption Agreement And Plan Document'

The IRA adoption agreement and plan document explains the plan's annual contribution limits, how contributions may be invested, the types of investments that are prohibited (e.g., collectibles), how and when the account funds may be withdrawn, provisions regarding required distributions, under what conditions the account may be transferred, what will happen to the account if the owner (depositor) dies, and what fees and expenses are associated with the plan.

RELATED TERMS
  1. Recharacterization

    The treatment of a contribution as being made to another type ...
  2. Reconversion

    A method used by individuals to minimize the tax burden of converting ...
  3. Required Minimum Distribution - ...

    The amount that Traditional, SEP and SIMPLE IRA owners and qualified ...
  4. Triggering Event

    1. A tangible or intangible barrier or occurrence that, once ...
  5. Roth IRA

    An individual retirement plan that bears many similarities to ...
  6. Spousal IRA

    A type of individual retirement account that allows a working ...
Related Articles
  1. Roth Vs. Traditional IRA: Which Is Right ...
    Retirement

    Roth Vs. Traditional IRA: Which Is Right ...

  2. Can an IRA beneficiary roll the IRA ...
    Retirement

    Can an IRA beneficiary roll the IRA ...

  3. Impact Of Continuing To Work In Retirement ...
    Retirement

    Impact Of Continuing To Work In Retirement ...

  4. Independent 401(K): A Top Retirement ...
    Retirement

    Independent 401(K): A Top Retirement ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center