IRA
n. countablen. Stands for Individual Retirement Account. A special type of bank account in the US that helps you save money for when you stop working. You usually get tax benefits for putting money into it.
n. Abbreviation for Individual Retirement Account. A tax-advantaged investment tool used by individuals to earmark funds for retirement savings. Often contrasted with employer-sponsored plans like the 401(k).
He puts five hundred dollars into his IRA every month.
Financial advisors often recommend starting an IRA early in your career to maximize the benefits of compound interest over several decades.
While traditional IRAs offer immediate tax deductions on contributions, Roth IRAs provide the benefit of tax-free withdrawals during retirement, making them a strategic choice for younger investors in lower tax brackets.
Usually preceded by 'an' because the acronym is pronounced as individual letters (I-R-A).