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Individual retirement account information


An individual retirement account[1] (IRA) in the United States is a form of pension[2] provided by many financial institutions that provides tax advantages for retirement savings. It is a trust that holds investment assets purchased with a taxpayer's earned income for the taxpayer's eventual benefit in old age. An individual retirement account is a type of individual retirement arrangement[3] as described in IRS Publication 590, Individual Retirement Arrangements (IRAs).[4] Other arrangements include employer-established benefit trusts and individual retirement annuities,[5] by which a taxpayer purchases an annuity contract or an endowment contract from a life insurance company.[6]

  1. ^ See subsection (a) of 26 U.S.C. § 408 and the Treasury regulation at 26 C.F.R. sec. 1.408-2.
  2. ^ See paragraph 37 of subsection (a) of 26 U.S.C. § 7701.
  3. ^ See 26 C.F.R. sec. 1.408-4.
  4. ^ "Publication 590: Individual Retirement Arrangements (IRA)" (PDF). Internal Revenue Service. 2012. p. 8.
  5. ^ See, generally, subsection (b) of 26 U.S.C. § 408 and 26 C.F.R. sec. 1.408-3.
  6. ^ "Traditional IRAs". Internal Revenue Service website. Retrieved 2012-12-10.

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