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LSDefine

Simple English definitions for legal terms

individual retirement account

Read a random definition: fons juris

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 The contributions, along with any interest earned, are not taxed until the money is withdrawn after the account holder reaches 59 1/2 years old. If money is withdrawn before then, a 10% penalty may apply.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  • Traditional IRA: Contributions are tax-deductible, but taxes are paid when money is withdrawn.
  • Roth IRA: Contributions are not tax-deductible, but money can be withdrawn tax-free if certain rules are followed.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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Dkk
19:42
Maybe, didnt happen last time.
19:42
it was hard to not improve it. google search was terrible due to the ads and seo cheaters with buzz words and alt text
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
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