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LSDefine

Simple English definitions for legal terms

individual retirement account

Read a random definition: The Bluebook

A quick definition of individual retirement account:

An Individual Retirement Account (IRA) is a type of savings or brokerage account that allows a person to save money for their retirement. You can contribute a certain amount of money each year, and the money you put in and any interest it earns is not taxed until you withdraw it after you turn 59 1/2 years old. There are different types of IRAs, including the Education IRA, which allows you to withdraw money tax-free for education expenses, and the Roth IRA, which lets you contribute money that is not tax-deductible but is also not taxed when you withdraw it.

A more thorough explanation:

An individual retirement account (IRA) is a type of savings or brokerage account that allows a person to contribute a certain amount of earned income each year. The contributions, along with any interest earned, are not taxed until the money is withdrawn after the account holder reaches 59 1/2 years old. If money is withdrawn before then, a 10% penalty may apply.

There are different types of IRAs, including:

  • Traditional IRA: Contributions are tax-deductible, but taxes are paid when money is withdrawn.
  • Roth IRA: Contributions are not tax-deductible, but money can be withdrawn tax-free if certain rules are followed.
  • Education IRA: A type of IRA that allows tax-free withdrawals for education expenses.

Let's say John has a traditional IRA and contributes $5,000 per year. He earns interest on his contributions, but does not pay taxes on that interest until he withdraws the money. When John turns 65 and starts withdrawing money from his IRA, he will pay taxes on the amount he withdraws.

Another example is Sarah, who has a Roth IRA. She contributes $3,000 per year and earns interest on her contributions. When Sarah turns 60 and starts withdrawing money from her Roth IRA, she will not have to pay taxes on the amount she withdraws, as long as she follows the rules for Roth IRA withdrawals.

These examples illustrate how IRAs work and the different tax implications for different types of IRAs.

individual proprietorship | Individuals with Disabilities Education Act

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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