INDIVIDUAL RETIREMENT ACCOUNTindividual retirement account. A savings or brokerage account to which a person may contribute up to a specified amount of earned income each year. ? The contributions, along with any interest earned in the account, are not taxed until the money is withdrawn after a participant reaches 59 1/2 (or before then, if a 10% penalty is paid). ¡ª Abbr. IRA. Cf. KEOGH PLAN. [Cases: Internal Revenue 3594. C.J.S. Internal Revenue ¡ì¡ì 206¨C208, 319¨C326.]
education individual retirement account. An individual retirement account from which withdrawals may be made tax-free if the withdrawn funds are used for education costs. ? Before 2002, annual contributions were limited to $500. In 2002, the contribution limit increased to $2,000 per year for families with incomes under $190,000.
Roth IRA.An IRA in which contributions are nondeductible when they are made. ? No further taxes are assessed on the contributions (or accrued interest) when the money is withdrawn (if all applicable rules are followed). This term takes its name from Senator William Roth, who sponsored the legislation creating this type of IRA.
How do Chinese lawyers translate the term INDIVIDUAL RETIREMENT ACCOUNT?