Individual Retirement Account (Noun)
Meaning
A retirement plan that allows you to contribute a limited yearly sum toward your retirement; taxes on the interest earned in the account are deferred.
Classification
Nouns denoting cognitive processes and contents.
Examples
- Contributing to an individual retirement account can help you save for your future and reduce your taxable income.
- She set up an individual retirement account through her bank to start building a nest egg for her golden years.
- The financial advisor recommended that he open an individual retirement account to supplement his employer-sponsored 401(k) plan.
- The couple decided to prioritize funding their individual retirement accounts to take advantage of the tax benefits.
- By contributing to an individual retirement account, he was able to reduce his taxable income and save for retirement at the same time.