Business / Taxes / Individual Retirement Account (IRA): Individual retirement accounts (IRAs) provide tax incentives to encourage people who earn income to invest for retirement. You open an IRA with a financial services firm, such as a bank, brokerage firm, or investment company, as custodian. The accounts are self-directed, which means you can choose among the investments available through your custodian. There are two types of IRAs, tax-deferred tradtional accounts and tax-free Roth accounts. With either type you usually can't make withdrawals without penalty before you turn 59 1/2. With a traditional IRA you must begin to take minimum required distributions (MRD) by April 1 of the year you turn 70 1/2. Earnings and deductible contributions are taxed at your regular rate as you withdraw. There are no required distributions from a Roth IRA, and all withdrawals are free of federal income tax if you're at least 59 1/2 and your account has been open at least five years. You can contribute to a traditional IRA regardless of your income, and you may qualify to deduct your contribution if your modified adjusted gross income is less than the ceiling for your tax filing status. You also qualify if you're not eligible to participate in an employer sponsored plan where you work. You qualify for a Roth if your modified adjusted gross income is less than the ceiling for your filing status.
Account Noun Synonyms: calculation, accounting, reckoning, computation, (financial) statement, enumeration
Individual Adjective Synonyms: single, sole, particular, separate, distinct, discrete, solitary, lone
Health / Health Insurance / Medically Needy Individuals: Enrollees in Medicaid programs whose income or assets exceed the maximum threshold for certain federal programs. MORE
Business / Human Resources (HR) / Medical Savings Accounts (MSA): Savings accounts designated for out-of-pocket medical expenses. In an MSA, employers and individuals are allowed to contribute to a savings account on a pre-tax basis and carry over the unused funds a MORE