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What Does IRA Stand For? Not What You May Think

Saturday, September 15, 2012 - 10:20 AM
This The Slott Report post has some interesting facts about IRAs. Here's one of them:
If you're like the majority of people - including financial advisors and accountants - here's something you probably don't know. IRA does NOT technically stand for individual retirement account. Instead, the IRA stands for Individual Retirement Arrangement. If you don't believe me, just check out IRS Publication 590. It's right there on the cover.

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Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
1. Saturday, September 15, 2012 - 11:06 AM
Well someone at the IRS must have gotten confused over what it means because I goggled up definition of IRA and everyone of them came up "Individual Retirement Account".  Not that it makes a difference because an Arrangement and an Account are basically the same thing.  There is a good chance that if anyone has an old IRS form for IRAs it would be called an "account" on the old forms.  No big deal because most of us just call it an IRA.

BTW, I decided to goggle up 2009 IRS Form 590 and it is called Individual Retirement Arrangement even back then.  Maybe it was called it from the start and I just never paid attention to it.
4
paoli2paoli21,146 posts since
Aug 10, 2011
Rep Points: 5,113
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