Business and Personal Finance Dictionary

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• INDIVIDUAL RETIREMENT ACCOUNT (TRADITIONAL IRA)
  
  An individual, tax-deferred retirement account for employed persons. Subject to certain limits, contributions are deductible against income earned that year. Interest and profits accumulate tax-deferred until the funds are withdrawn at age 59 1/2 or later. Early withdrawals are subject to a 10% penalty. Withdrawals also may be subject to income tax.
  
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