Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Individual Retirement Account (IRA) A tax-deferred retirement account for an individual that permits individuals to set aside up to $3,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). Individuals who are at age 50 or older can set aside up to $3,500 a year. Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis. Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn. see also Roth IRA, cash account, conduit IRA, rollover, direct rollover, excess accumulation, excess contribution, Keogh Plan, SEP IRA, single-premium deferred annuity, spousal IRA. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.