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Can you contribute to an IRA if your company has you in a pension plan?
Yes, but part or all of your traditional IRA contribution might not be deductible, depending on your income (MAGI). Roth IRA contributions are not deductible, at all.
What is the difference between provident fund and pension fund?
The difference between a pension fund and provident fund is in how the benefits are paid out. A provident fund pays all he retirement benefits in a lump sum cash benefit at retirement. A pension fund pays one third of the benefit as a lump sum at retirement and the rest is paid out over the lifetime of the beneficiary.
What is a pension?
A pension is a form of transfer payment, which is direct financial assitance to those who are no longer capable of working (after the age of retirement). A pension is given to those who work in both the public sector (government servants) and the private sector(not all private sector workers have a pension fund) for a given period of time. Thus if you have to work for 40 years to be eligable for the pension scheme and if you complete those 40 years then you will get a pension for the rest of your life.
Who is responsible for preparing the Pension papers of a retiring employee in a Municipality?
Typically, the Human Resources or Payroll department in a municipality is responsible for preparing the Pension papers of a retiring employee. They ensure all necessary paperwork is completed accurately and submitted to the appropriate pension fund for processing.
What does the word Trustee mean with regards to a pension fund?
A company's pension fund for its current and former employees is often held by a securities firm or a bank. The fund is administrated by a trustee that was appointed usually by the company. The trustee is assigned the duties of making sure all the company's required duties are being met. The trustee is also responsible for insuring that the fund is handled in accordance with the regulations that were set up by the company. The trustee is also responsible for making sure the investments in the fund are sound ones and are diversified.
What are pension plans?
Pension plans are a type of retirement plan in which the employee and employer make contributions. These contributions are invested and to be received upon retirement. In most all cases pension plans are tax exempt. The two types of pension plans are defined benefit plans and defined contribution plans. A defined benefit plan guarantees an amount upon retirement no matter how the investment performed. A defined contribution plan is not a guaranteed amount and heavily depends on the investment performance.
What is the pension for a union electrician?
The amount would vary by location, union, and how much was paid into your fund. I have 36 years in the trade and i am retiring at age 55 with a pension of 2900 with a 50% spousal option that brings my pension down to 2610. Our union doubles our pension from age 55 to 62 if you meet certain requirements, that I meet. This brings my retirement to 5510 gross dollars a month. I do have to pay federal tax out of this, but no FICA, state tax our union dues. We also have an annuity fund that I have been in from its inception in 1981. As of 2/1/2011 i have 510,000 in this fund. When I reach 62 the double pension will stop, but the NEBF and the international pension will start along with social security. The total retirement with all four sources will be about 5600 dollars plus any money taken out of the annuity. This amount is not the average pension a union electrician will make, but one who worked out of the north east with no lost time and at foreman and GF rate.
UK Pension and Old Age Pension?
The UK Pension is divided into seven major categories. The following categories represent the seven: Basic State, Occupational Pensions, State Second Pensions, Stakeholder Pensions, Personal or Individual Pensions, and Group Personal Pensions. In the UK, the state provides a basic pension that is designed to prevent poverty during old age. Men must be over the age of 65 and women must be over the age of 60 to get this UK pension. The goal is to equalize the pension age, and the government plans to have the age equal by the year 2020. The Old Age Pension was first introduced in 1909. The initial payment was 5 shillings per week. The Old Age Pensions Act 1908 stated that the qualifying age for this UK pension was 70. There is an extra state pension available to those paying National Insurance, and other qualifying groups in the UK. Furthermore, participation in the Additional Pension Scheme is voluntary; this differs from the Basic Pension that is mandatory for all that work in the UK. Those that do not wish to participate can opt out of this program. The Occupational Pension Schemes in the UK are provided specifically to employees by their employers. Traditionally, this pension plan was popular; however, the number of employers that participate in this UK pension scheme has decreased. Employers have closed most of their Occupational Pension Schemes to new employees. As a result, they offer a plan called money purchase or defined contribution arrangements. The Occupational Pension pays into a specified fund, and the fund is then used to purchase the UK pension. The pension amount is determined by the value of the fund at the time of retirement. In addition, the health of the annuity also makes a difference in the pension amount received. The Occupational Pension Schemes are traditionally jointly funded by both the employer and the employee. The employee can contribute up to 6% of their salary tax free. In the UK a non contributory pension scheme is when the employer funds the pension without any contribution from the employee. These contributions by the employer are put into a separate trust account to fund retirement when needed. Most UK pension plans grow tax free. The beneficiary does not have to worry about taxes.
In what year was the General Motors pension started?
in 1964 this was the same year all Canadian workers had parity with the American workers and 19 billion retirement fund was growing in GM for Hourly Workers
Is disposable income after you have paid your living expenses?
No. Disposable income is that which is left after all taxes, pension contributions, medical insurance share, etc. has been deducted from an employee's salary.
What is false about contribution retirement plans?
One common misconception about contribution retirement plans, such as 401(k)s or IRAs, is that all contributions are tax-deductible. While many contributions can be tax-deductible, certain limits and income thresholds apply, and not all plans offer the same tax benefits. Additionally, withdrawals from these accounts during retirement can be subject to income tax, which can be misleading for those assuming all withdrawals are tax-free. Lastly, some plans may also have restrictions on how and when you can withdraw funds without penalties.
Can you get a tax deduction for the losses on a traditional IRA if you are not receiving distributions yet?
No. You already got a deduction in advance for the money you put in. You can't have a second deduction. The only time you could get a deduction is if you made any non-deductible contributions to your Traditional IRA (TIRA). If you completely liquidate ALL of your TIRA accounts and the sum total of all the distributions you ever received is less than the total of your non-deductible contributions, then you can claim a miscellaneous itemized deduction (subject to the 2% floor) for the difference.
