Individual Retirement Account

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IRA is a U.S.-based tax-advantaged personal savings plan allowing individuals to invest in stocks, bonds, or mutual funds for retirement. Contributions may be tax-deductible (Traditional) or made after-tax (Roth), allowing earnings to grow tax-deferred or tax-free. Key Aspects 1️⃣ Traditional IRA: Contributions are often tax-deductible; taxes are paid upon withdrawal in retirement. Roth IRA: Contributions are made with after-tax funds; qualified withdrawals in retirement are tax-free. 2️⃣ Contribution Limits: The IRS sets annual maximum contribution limits. Withdrawals: Generally, withdrawals before age may incur penalties. 3️⃣ Other Types: SEP IRA (for self-employed/small businesses) and SIMPLE IRA bond = a certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time tax-deductible = able to reduce the taxes a person owes in a given year tax-deferred = used to describe a situation in which you pay tax for something at a later date than usual incur = to make problems IRS = The Internal Revenue Service = the U.S. government agency responsible for collecting federal taxes
EFL subset that concentrates more on language in context than on grammar and language structures. It covers topics from accounting or computer science to tourism and business management. "Specific" means the studying through a field that is already known and relevant to a student.