Ira is a noun that refers to an individual retirement account in the United States. The acronym IRA stands for Individual Retirement Arrangement or Individual Retirement Account. It is a financial product that is specifically designed for individuals to save money for their retirement, with certain tax advantages. The purpose of an IRA is to encourage individuals to save for their own retirement, rather than solely relying on government-funded social security programs.
There are different types of IRAs available, including traditional IRAs and Roth IRAs. A traditional IRA allows individuals to contribute pre-tax income into their account, with taxes being paid when withdrawals are made during retirement. Contributions to a traditional IRA can also be tax-deductible. On the other hand, a Roth IRA is funded with after-tax income, meaning that contributions are made with money that has already been taxed. However, withdrawals from a Roth IRA during retirement are generally tax-free.
Contributions made to an IRA are subject to limitations set by the Internal Revenue Service (IRS) each year. Additionally, there are penalties for early withdrawals or not meeting specific requirements for using the funds for retirement purposes. Overall, an IRA is a popular and valuable tool for individuals to plan and save for their future post-employment years.
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The word "ira" has its origins in Latin. It is derived from the Latin word "īra" which means "anger" or "wrath". The Latin word itself traces back to the Proto-Indo-European root "*eiHro" meaning "to move violently" or "to cause anger". This root can be seen in various other related words across different languages such as "ire" in English, "zorn" in German, and "ira" in Spanish.