Definition
Individual retirement annuity (IRAnnuity )is the annuity-contract version of an individual retirement arrangement, and is issued by an insurance company. There are several versions of an IRAnnuity, (a) traditional IRAnnuity, where assets accrue earnings on a tax-deferred basis and distributions are treated as ordinary income, (b) Roth IRAnnuity, where assets accrue on a tax-deferred basis, but qualified distributions are tax-free (c) SEP IRAnnuity, which are established and funded by business owners/employers for their employees.
Referring Cite
IRC § 408(b), IRS Publication 590
Additional Helpful Information
See the definition of IRA for more, including income limits for Roth IRAs and eligibility requirements
