In addition, there are rules against self - dealing that
prohibit retirement account holders from using the account assets to benefit themselves and their families prior to retirement.
Companies like Fidelity, the world's
largest retirement account holder has 13.5 million accounts, E * Trade, one of the most well known of the brokers for retail investors has 3.9 million accounts and TD Ameritrade has 5.7 million.
Early retirement is permitted for
individual retirement account holders under certain conditions, and excess funds can be withdrawn from an individual account for any reason as long as the worker's account balance is sufficient to finance 150 percent of the minimum pension.
The assets from the account are paid directly to
the retirement account holder or beneficiary either electronically or by check.
The retirement account holder may be bound to pay income tax on distributions paid during the year.