These are personal, tax-sheltered retirement accounts that you can invest in if you meet certain requirements. Contributions are tax-deductible for some, depending on circumstances. Earnings in these plans can grow tax-deferred or, in the case of the Roth IRA, tax-free.
In the United States, a retirement savings plan that allows people with earned income to deposit a portion of that income in a tax-deferred savings arrangement that is established by an individual and that meets certain requirements specified in the federal tax laws, including a requirement that the trustee of the trust account be a bank, insurance company, or other financial institution. See also Keogh plan.
A form of retirement investment administered by a bank or other custodian in the form of an individual retirement account, or by an insurance company in the form of an individual retirement annuity.