IRA Plans

In most cases your custodian won't allow you to own gold coins. But you can buy bullion with GLD and there are many other funds that own gold and precious metals like TGLDX, MIDSX. Search for mutual funds that have a basket of gold mining companies, etc. If you really want to own gold coins, you can do so in a self-directed IRA. There are a number of nationally recognized trust companies that offer such accounts. According to IRS rules, their are non-collectible "bullion" coins that you can own. Generally, they have to be .995 fineness or better. These include American Gold Eagles, Candadian Gold Maple Leafs and Austrian Philharmonics (which are gorgeous coins!) You cannot own South African Krugerrands since they only have .916 fineness.

By taking the PFMV on 12/31 of previous year for all IRA accounts (Roth doesn't have RMD) and divide your age factor. i.e PFMV = $100,000 and age factor is 22.7 then the RMD would be $4405.29

RMD would be different each year since the PFMV and age factor will change.

Age factor can be find in the 590 Pub on www.irs.gov

You can set up a Roth IRA account at several locations. You may choose a bank, brokerage firm, insurance company, etc. Once the account is set up you need only to determine how much you can contribute each year based on your eligible income. That amount can be determined with the help of your tax professional. Then, you decide when you want to make the contribution and write a check made payable to the source you have chosen to administer the account. Make certain you have clearly indicated the purpose of the contribution and the tax year for which the contribution is made. Most people who work for a living, or have a spouse who works for a living, can contribute to a Roth IRA. Your most important task is to take care to obtain your information from bona-fide professionals who can provide the CORRECT information.

Yes, there is no mandatory contributions into a Roth. You could contribute once and never do it again.

Yes, although you will get options that give you some (limited) flexibility with regard to WHEN you take the distributions and pay the taxes.

can be withdrawn without ten percent IRS penalty after age 59 1/2

Yes. But there may be penalties for early withdrawal. And, if it is a traditional IRA there will also be federal (and maybe state) income taxes due, as well as a ten percent penalty to the IRS under most cases, if the withdrawal is made before age 59 1/2. For a roth IRA, there also may be penalties for early withdrawal, but there will be no taxes due if all you withdraw is the amount you originally deposited. Once you are 59 1/2, you may withdraw even the gain without taxes.

Beneficiary = benefits from Benefits from the execution of a will / payout from an insurance policy etc.

Taxes are paid upon withdrawal at a later date

Cash value is a savings element of whole life insurance. It is independent of the benefit amount and its growth is based on how much you have paid into the policy. You can access this money in the form of a loan while still keeping the policy, or if you were to cancel the policy you would receive a check for the cash value.

If you would like to know how much cash value is in your policy you can call your ins. company or check the "schedule page" of your policy where there is usually a breakdown of how cash value will accumulate over time (depending on the type of policy). It usually takes several years for cash value to begin accumulating on an average adult policy.

It's more common that people would term it "counted toward the RMD" as the RMD is a minimum that you must get to.

You withdraw from the account and pay tax on the withdrawal amount. If you want to use some of it to pay the tax, it is only withdrawn once. If you want to withdraw more to pay the tax, it too is a withdrawal. If you want to pay the tax using other money, that's fine, it isn't a withdrawal.

Not if you're trying to avoid paying Canadian taxes and you're not yet qualified in Canada to make withdrawals: It would be considered an early withdrawal from the RRSP and be subject to both taxes and penalties.

Yes, unless the person in question is still working and contributing to the plan

The initials stand for....... individual retirement account

No. SEP-IRAs contibutions can only take place before-taxes. They are contributory in nature meaning you can make contributions to them but you cannot rollover non-SEP-IRAs (or 401k accounts) into a SEP-IRA.

If you wish to make Roth contributions to a business retirement account, your retirement account is likely to become substantial or you have funds in a 401(k) from a previous employer and you are an one person (or one person with a spouse) business, you should look into individual 401(k)s. All of the major financial institution and self-directed trust companies offer them. They work like a corporate 401(k) but you have complete control. They may be better than a SEP since:

1. The contribution limits are higher

2. You can borrow against the 401(k) but not a SEP

3. You can have a Roth 401(k) but you cannot make Roth contributions to a SEP

4. You can buy life insurance or invest in a S corporation in a 401(k)

Yes, as long as it doesn't go over the total amount allowed by law for the year. When you make a contribution, you must identify what tax year you are contributing for.

No you cannot. SEP-IRAs are contributory in nature meaning you can make contributions to them but you cannot rollover non-SEP-IRAs (or 401k accounts) into a SEP-IRA. If your SEP IRA is likely to become substantial or you have funds in a 401(k) from a previous employer and you are an one person (or one person with a spouse) business, you should look into individual 401(k)s. All of the major financial institution and self-directed trust companies offer them. They work like a corporate 401(k) but you have complete control. They may be better than a SEP since: 1. The contribution limits are higher 2. You can borrow against the 401(k) but not a SEP 3. You can have a Roth 401(k) but you cannot make Roth contributions to a SEP 4. You can buy life insurance or invest in a S corporation in a 401(k)

An IRA is established for tax savings as your money grows. Most IRA money is invested in Stocks, Bonds, Mutual Funds, and Money Markets. You are probably referring to a Roth IRA. If you plan on not touching the money for a long time by all means put it in the Roth IRA but if you feel you may need it as many college students will do not as there is a penalty for withdrawing funds early. Saving for retirement is important but you are very young and college should be a priority. As far as FAFSA goes a 2000 dollar account will have very little effect on your financial aid. In short if only put in the IRA if you know you are definately not going to touch it. Invest it in several mutual funds with a diverse selection. Example: Large Cap, Mid Cap, Small Cap, International, Fixed Income with mabey 500 dollars in 4 of those listed above. But if you may need it leave it in an account you can access easily without a penalty.

Yes, you can do that. You'll obviously pay on the RMD from the normal IRA and then make a contribution to the Roth. However, there are many limits on who can contribute to a Roth and those would still be in effect. (Which normally makes it unfeasible). For for more details you should discuss with your own IRA administrator.

A bank could be a custodian but most (if not all) are not set up to be nor are they willing to do so. You will need to use a custodian specializing in self-directed IRAs.

Yes you can. Open a Roth IRA CD at the bank. The bank will have transfer papers so that you can transfer the funds from the Roth custodian to the Bank. Having said that, a CD would be an extremely poor long-term investment for a Roth. The purpose of the Roth IRA is to allow the investor to have tax-free money at retirement. A CD is traditionally one of the lowest performing investments over the long-term. If you have at least 10 years until retirement speak with an investment professional (or read investment articles on conservative balanced portfolios.

Under current law - contributions taxed when contributed, not taxed when withdrawn. Earnings or investment gain (which remember to consider in any analysis would currently have only been taxable at the low capital gains rates in NON IRA situations)...not taxed on withdrawal either.

If it is a traditional IRA there are tax consequences. When you say cash it in early, to me that means prior to age 59 -1/2, Roth or traditional, there is are financial consequences. There is a 10% penalty for early withdrawal.