What is IRA? 

An IRA is an Individual Retirement Account, and provides either a tax-deferred or tax-free way of saving for retirement. There are many different types of accounts within the world of IRAs, depending on the financial goals and situations of each individual, though traditional and Roth IRAs are the most common choices.

A traditional IRA allows tax-deductible contributions of up to $4,000 per year, or more if you are over age 50. Whatever you contribute towards your IRA comes off your yearly income, thereby reducing total tax liability. However, once the money in an IRA is withdrawn, it is subject to standard income taxes and an additional 10% penalty if withdrawn before the age of 59 1/2. An exception is made if the money is used for purchasing a house or to cover approved higher education costs. Standard income tax still applies, but the ten percent penalty is waived. This provides a great investment tool with flexibility for important purchases.

Answered by Nagendra , an ibibo Master, at 8:27 AM on May 24, 2008

IRA or IRDA

Answered by Arun , an ibibo Citizen, at 1:28 PM on May 22, 2008

IRA is a retirement plan designed especially for small businesses and, true to its name, gives you a simplified way to make contributions toward your own retirement and your employees’ retirement.

Answered by Prasanna , an ibibo Citizen, at 12:05 PM on May 13, 2008

IRA (Individual Retirement Account)is an investing tool used by individuals to earn and earmark funds for retirement savings. There are several types of IRAs: Traditional IRAs, Roth IRAs, SIMPLE IRAs and SEP IRAs.

Traditional and Roth IRAs are established by individual taxpayers, who are allowed to contribute 100% of compensation (self-employment income for sole proprietors and partners) up to a set maximum dollar amount. Contributions to the Traditional IRA may be tax deductible depending on the taxpayer's income, tax filing status and coverage by an employer-sponsored retirement plan. Roth IRA contributions are not tax-deductible.

SEPs and SIMPLEs are retirement plans established by employers. Individual participant contributions are made to SEP IRAs and SIMPLE IRAs.

Also referred to as "individual retirement arrangements."

Answered by Seema , an ibibo Master, at 2:08 PM on May 07, 2008

IRA has many full forms depending where it is used.

Answered by subu , an ibibo Specialist, at 6:03 PM on May 06, 2008

HI NEERAJ:-
An IRAIRAIRA is an Individual Retirement Account, and provides either a tax-deferred or tax-free way of saving for retirement. There are many different types of accounts within the world of IRAs, depending on the financial goals and situations of each individual, though traditional and Roth IRAs are the most common choices.

A traditional IRAIRAIRA allows tax-deductible contributions of up to $4,000 per year, or more if you are over age 50. Whatever you contribute towards your IRAIRAIRA comes off your yearly income, thereby reducing total tax liability. However, once the money in an IRAIRAIRA is withdrawn, it is subject to standard income taxes and an additional 10% penalty if withdrawn before the age of 59 1/2. An exception is made if the money is used for purchasing a house or to cover approved higher education costs. Standard income tax still applies, but the ten percent penalty is waived. This provides a great investment tool with flexibility for important purchases.

Roth IRAs were created in 1997 to help middle-class Americans. These IRAs are not tax-deductible, but provide even greater flexibility than traditional IRAs. Contributions to the account can be withdrawn at any time without being subject to penalty or tax, though interest earned in the account is. After five years, both contributions and earnings in the account can be withdrawn without penalty or taxation. The same benefits concerning education and housing also apply as with the traditional IRAIRAIRA.

Answered by shepherd , an ibibo Master, at 3:28 PM on May 06, 2008

IRA stands for Individual retirement Arrangement is simply an account that is designated for retirement savings.

Answered by Mustafa , an ibibo Citizen, at 5:25 PM on May 04, 2008