Untangling the IRA rules. (individual retirement accounts) The Tax Adviser | August 1, 1994| | COPYRIGHT 1994 American Institute of CPA's. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information) Copyright

The Code's individual retirement account (IRA) provisions were enacted by the Employee Retirement Income Security Act of 1974 (ERISA) to encourage individuals to save for retirement. According to a study by the National Institute on Aging,(1) however, many eligible taxpayers are not using IRAs and will have no retirement income other than social security. These individuals should be made aware of the tax benefits of IRAs and encouraged to fund such accounts, if possible.

IRAs were first permitted in 1975. Initially, they were available only to individuals who were ...

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