The individual retirement account (IRA) supplemental table includes both IRAs and Keogh plans. An IRA is a tax-deferred account set up by or for an individual to hold and invest funds for retirement. Keogh plans are a tax-favored retirement plan covering self-employed individuals, partners, and owners of unincorporated businesses; it is also called an H.R. 10 plan. These plans were first made available by the Congress in 1962, but today they operate under rules very similar to those for retirement plans for a corporation's employees.
IRAs and Keoghs are not considered private pension plans because they are not established by employers for the benefit of their workers and retirees. They are not treated as a separate sector in the flow of funds accounts, but rather are included among the assets at the financial institution that holds the IRA or Keogh. For example, IRAs held at banks are included in the U.S.-chartered depository institutions sector, while IRAs held in mutual funds are included in the mutual fund sector. As a result, this table does not provide a breakdown of IRA assets, but rather a breakdown of financial institutions that hold the IRAs. IRAs held in the form of variable annuities are included in the assets of life insurance companies rather than in mutual funds or money market funds.