# IRA

/ˈaɪɹə/ (US)

Source: https://englishreference.com/word/ira
Updated: 2026-08-08

## Senses

### 1. US retirement account

noun · CEFR B2 · American English

Stands for Individual Retirement Account. A type of savings account in the US that helps you save money for when you stop working, often with tax benefits.

For teachers: Abbreviation for Individual Retirement Account. A tax-advantaged personal savings plan in the United States that allows individuals to set aside money for retirement.

- He decided to put five thousand dollars into his IRA before the tax deadline.
- Financial advisors often recommend diversifying assets within a Roth IRA to maximise long-term tax-free growth for younger investors.

Usage: Usually treated as a countable noun; often preceded by 'Roth' or 'Traditional'.

### 2. Irish paramilitary group

noun · CEFR B2 · British English

Stands for Irish Republican Army. A group that used force to try to make Northern Ireland leave the UK and join the Republic of Ireland.

For teachers: Abbreviation for Irish Republican Army. A paramilitary organisation seeking the end of British rule in Northern Ireland and the unification of the island.

- The history book explained the role of the IRA during the Troubles in Ireland.
- The peace process required all paramilitary groups, including the IRA, to commit to a permanent ceasefire and the decommissioning of weapons.

Usage: Usually preceded by the definite article 'the'.

### 3. US climate and tax law

noun · CEFR C1 · American English · Academic

Stands for Inflation Reduction Act. A major US law passed in 2022 to help the environment, lower healthcare costs, and change tax rules.

For teachers: Abbreviation for Inflation Reduction Act. A landmark 2022 United States federal law aimed at curbing inflation through deficit reduction and investing in domestic energy production.

- The new IRA law provides tax credits for families who buy electric cars.
- Economists debated the long-term impact of the IRA on domestic manufacturing and its efficacy in reducing carbon emissions across the industrial sector.

Usage: Usually preceded by the definite article 'the'.

## Examples

- 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.

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