Can you deposit a settlement check for and IRA account to that IRA account?
* Email * Print Question: I recently received a small class-action settlement check from Lucent Technologies for inflated stock pricing. I owned the stock in my IRA, and the check is made out to me and Vanguard, my IRA custodian. Do I cash the check or send it to Vanguard? -- C.W., O'Fallon, Ill. Answer: We called Vanguard about your situation, and the company agreed to accept the check and tuck the money back into your IRA. Endorse the check and send it to Vanguard, with instructions to roll it into your account. "A settlement is not considered a contribution," says IRA expert Ed Slott of Rockville Centre, N.Y. "It is replacing lost value and constitutes a valid rollover to your IRA." Related Results * Short Term Energy Monitoring: A Road To Long Term Energy Savings? * NCS-Omnicare: The New Landscape For M&A * Cloud Computing Also Hit by IT-Spending Cutbacks * Ohio's Health House Provides Asthma-Free Indoor Living * Agistix's On-Demand Solution Gives Maxim Centralized Logistics Control Slott says that you are on solid legal footing, because the IRS issued 11 private-letter rulings at the end of 2004 regarding legal settlements in connection with investments inside IRAs. Although such rulings apply only to the individual cases they address, they are an indication of how the IRS would rule in similar circumstances.
Can you close out an Roth IRA account?
yes, but it would be a distribution with penalties if not needed age.
Is it true a person cannot contribute to their ROTH IRA if they make over a certain amount per year?
Yes, $114,000 for single filing and $166,000 for joint filing.
Can you rollover an IRA into a certificate of deposit IRA?
If your bank drops interest rates below acceptable levels or you find a better deal elsewhere, it's time to transfer your IRA CD to another bank. You need to be careful during this process. If you request funds from your old IRA and hold them longer than 60 days, you're going to pay income taxes on the money as well as a 10 percent penalty for early withdrawal if you're under age 59 ½. Luckily, avoiding this penalty is easy once you understand IRA transfer rules.
What does Next Maturing Amount on an IRA mean?
I assume you are talking about a bank IRA CD? Brokerage IRA don't mature or have a maturity date like bank IRA CD's. In bank IRA CD's, the maturing amout would be the amount deposit when the CD was open and the accrued interest that the CD has earned from opening time to maturity date (i.e 1 years, 2 year, etc). If you take the amount out before maturity date, then there would be a penalty that the firm which holds that CD would deduct from the current CD amount (amount deposit + the interest that has already been earned).
Can you purchase CD's in a SEP-IRA?
No, CD's are purchased in bank accounts (not brokerage) within Trad. or Roth IRA's
Can you transfer a husbands Roth IRA to the wifes ROTH IRA?
No, unless it's a divorce or death issue.
Should I take a lump sum or not on an inherited IRA?
Depends....if you want to get hit with taxes and all. Best to consult with a tax/financial advisor.
If you want to get out of IRA and go back to 401 k can you send money back to 401?
It depends on the provisions of your employer. Most will allow a rollover from another qualified plan (meaning an IRA or another 401(k) plan) but you have to be actively employed when you request to roll funds into the 401(k) plan.
The Irish Republican Army (IRA) were a paramilitary group with the goal of freeing Ireland from British rule.
They originally formed in 1913, under the name "The Irish Volunteers," in response to the Ulster Volunteer Force's creation in Northern Ireland (which was intended to help prevent the Home Rule - a document trying to let Southern Ireland vote on their own taxes)
They officially became the IRA in 1969.
The IRA split into various groups since then, but as to what the aggressive groups did:
They did numerous criminal activities, including bombings, assassinations, kidnappings, extortion, and robberies. Primary targets included British police, officials, guards, and occasionally bombings at subways and malls located in Great Britain.
Criminal acts include:
· July 1972 - Bloody Friday - Belfast was hit by 22 bombs in 1 hr 15 min minutes, killing 9, and injuring 130
· 1974 - Bombing of a Birmingham pub that killed 19 persons.
· 1979 - The assassination of Lord Mountbatten (1st Earl Mountbatten of Burma), Queen Elizabeth II's uncle and the last Viceroy of India
· 1979 - Unsuccessful assassination of Prime Minister Margaret Thatcher in Brighton, England.
· 1984 - Bombing of a Brighton hotel where then British Prime Minister Margaret Thatcher and her cabinet were meeting, which wounded several British officials and killed four other Britons
· 1993 - A car bombing in London's financial district, Canary Wharf, that killed one person and caused $1 billion of damage
· Early 1990s - Mortar attacks on the British prime minister's residence and London's Heathrow Airport.
· 1998 - A car bombing that killed 29 people in Northern Ireland. The attack led to the Irish government threatening the paramilitary groups
The IRA has also had groups which are peaceful, such as Sinn Fein, a group which is to this day trying to help make (currently all of - the southern section of Ireland is free from British rule) Ireland free from Britain.
Hope this Helps! :)
b...savings
Should an IRA be the beneficiary of a trust?
You need to speak with a tax professional. Contributions to an Individual Retirement Account come from an individual's earnings and are limited by the IRS.
How much insurance is provided for IRA accounts by the FDIC?
As of April 2006 the FDIC coverage for IRA's was increased to $250,000 from $100,000. This only includes money invested in bank deposites such as CD's and Money Market accounts and does not include Mutual Funds, Stock, Bonds, or Annuities. If you have non qualified accounts with the same bank you would receive $100.000 in coverage for those per person in addition to the $250,000 for the IRA account bringing your total coverage in those cases to $350,000. Married couples are eligible for $700,000 using the above information with the ability to increase this to 1.1 million with using living trusts or POD (payable on death) accounts.
Notes: Money Market mutual funds are not covered.
What types of retirement plans 401ks or IRAs might be best for retirement?
The right answer is, It Depends.
I like a ROTH IRA. Here we pay tax on our contributons. Qualified distributions from a ROTH IRA are tax free. The ROTH IRA also allows us to take our Annual Contributions out of the IRA at any time without tax or without penalty for any reason, even to make a trip to Vegas and put it all on red.
A Traditional IRA is OK too. Here we do not pay tax on our annual contributions giving us a tax advantage now. All distributions from a Traditional IRA are subject to income tax, and if taken before age 59.5 years, there is a 10% penalty. There are a few items that qualify for avoiding the 10% penalty.
Everyone can contribute to a Traditional. Not everyone can take the tax deduction. This is called an after tax Traditional IRA. The earnings are tax deferred. When you take a distribution from this IRA part of the distribution is subject to income tax and part of the distribution is tax free. These amounts are based on the ratio of your after tax contributions to the total amount of the IRA.
Both IRAs will provide you with more investment choices when you use a discount broker as the IRA custodian.
IRAs typically are afforded $1,000,000 of bankruptcy protection. This may vary from state to state.
The 401k contribution is taken from our pay each pay day. Some employer's offer a matching contribution. The Traditional 401k is not taxed when we contribute. It is taxed when we take a qualified distribution. Investment choices are usually limited to a set of mutual funds and savings accounts. Some 401k plans offer a loan feature. I do not recommend you ever take a loan from your 401k account.
Some employers offer a ROTH 401k. Your contributions are taxed as you make the contribution. When you take the qualified distribution from the plan your money comes out tax free. When the employer makes a matching contribution to this IRA, it is a tax deferred contribution. You will pay ordinary income taxes on distributions of the employer's contribution.
When you start contributing to a 401k plan, READ the Summary Plan Description. You will be given a copy, read it.
The big advantage of a 401k plan is for 2008 you can contribute up to $15,500. And if you are over age 50, you can contribute an additional $5,000. This "Catch-up" contribution can be made even if your 401k limits you to an amount lower than the $15,500.
Which is better? It Depends.
When must you start withdrawing from your IRA?
For Traditional IRA (sep, simple, etc), you have to start withdrawing at age 70 1/2. At that time you would have to take a RMD each year based on your age factor and value of the all your trad. IRA (sep, simple, etc) account on last day of previous year (PFMV) - i.e, if your account(s) were worth $100,000 and your age factor was 23.5, then you would have to take $4255.32 for that years RMD. The RMD will change each year since the value of the account and age factor change each year. The goal of the RMD is to zero out the account, but the age factor are so far set that it not possible/will never happen.
You not have to ever take withdraws from a Roth IRA since no RMD is required.