Individual Retirement Account (IRA)

Contributions to a traditional IRA are deductible from earned income in the calculation of federal and state income taxes if the taxpayer meets certain requirements. The earnings accumulate tax deferred until withdrawn, and then the entire withdrawal is taxed as ordinary income. Individuals not eligible to make deductible contributions may make nondeductible contributions, the earnings on which would be tax deferred.

Inflation

An increase in the price of products and services over time. The government’s main measure of inflation is the Consumer Price Index.

Intestate

A person who dies without leaving a valid will. State law then determines who inherits the property or serves as guardian for any minor children.

Investment Category

A broad class of assets with similar characteristics. The five investment categories include cash alternatives, fixed principal, equity, debt, and tangibles.

Irrevocable Trust

A trust that may not be modified or terminated by the trustor after its creation.