### Question
How does the law define individual retirement annuity?


### Answer
Under *26 U.S.C. § 408*, **individual retirement annuity** is defined as:

> an annuity contract, or an endowment contract (as determined under regulations prescribed by the Secretary), issued by an insurance company which meets the following requirements:



(1) The contract is not transferable by the owner

#### Citation:
  - *26 U.S.C. § 408*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

