What do the letters "IRA" stand for in retirement planning?

The correct answer refers to "Individual Retirement Account," which is a type of savings account designed to help individuals save for retirement while offering tax advantages. An IRA allows for tax-deferred growth of investments, meaning that individuals do not pay taxes on their earnings until they withdraw the funds, typically after reaching retirement age.

IRAs come in various forms, such as Traditional IRAs and Roth IRAs, each with distinct tax benefits and rules regarding contributions and withdrawals. This flexibility and the potential tax benefits make IRAs a popular tool for retirement planning as they can help individuals grow their savings in a tax-efficient manner over time.

The other options provided do not accurately reflect the widely accepted terminology used in retirement planning. "Investment Return Assessment," "Income Retirement Adjustment," and "Insurance Risk Assessment" are not recognized terms in the context of IRA's purpose or function, which further solidifies why the designation of "Individual Retirement Account" is the correct interpretation when discussing IRAs in retirement planning contexts.