Is Ira A Qualified Retirement Plan? 
An IRA -LRB- individual retirement arrangements -RRB- is a qualified plan under ERISA . IRAs are tax deductible , accumulate tax deferred and distribute taxable income at ordinary income tax rates . Distributions before age 59 could trigger a 10 % penalty in addition to the ordinary income taxes . Traditional investments like mutual funds and annuities can be placed inside an IRA . Life insurance in an IRA is prohibited . 