0
IRA Plans
Tax-advantaged retirement savings plans including the traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, and self-directed IRA
886 Questions
What is cash value for a policy?
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.
Are tax payments withdrawn from an IRA also counted against an RMD?
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 If you want to use some of it to pay the tax, it is only withdrawn once.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.
Can you convert a Canadian rrsp to a us IRA?
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.
Is a 457 subject to required minimum distribution?
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)
Can you contribute funds to your IRA account at anytime?
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.
Can you rollover a traditional IRA into a sepira?
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)
How do you roll over a Roth 401K into a Roth IRA?
There are some similarities and some differences between 401k and Roth IRA. Here are the some important differences between them.
Contribution: The money you put in 401k or Roth IRA account.
Earnings: It is the money you earn on contributed money (interest or capital gain).
Read more about each one in detail below:
- 401K Employer Retirement Account Plan
- ROTH IRA
Under current law, there is no ability for an investor in an employer-sponsored 401(k) account to make such a conversion to a Roth accounts within the same plan. Now, there are reports that the Senate is going to propose rules that overturn this law and allow certain employees to roll over amounts from their 401k retirement plans to a Roth-type savings account.
.
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.
At what age can you open up an IRA without a custodian?
I would have to guess at age 18. Since this is the general legal binding age. Call someone from Edward Jones or a place like that. They will tell you. Hope this helps.
18 is the correct answer; however, anyone under the age of 18 can have an IRA (trad. and Roth for minors) if they have a earned income (usually kid actors/actress or kid athletics, but also a normal job). They would just need for their guardian to open and handle account.
Can a bank be a custodian for real estate in an IRA?
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.
Can you move your Roth IRA investment to a CD at your bank?
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.
Are earnings in a Roth IRA taxed when they are withdrawn?
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.
Are there any tax credits for cashing in an IRA early?
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.
What are the tax implication when converting a regular IRA to a Roth IRA?
Converting a traditional IRA to a Roth gives you that future tax-free benefit, but at an immediate tax cost. You'll have to pay taxes on contributions that you previously deducted, as well as on the account's earnings. For more details speak with your plan administrator.
Depends on what the judgment is for. It the business was a part of the debt, yes. In the case of the IRA, not usually unless it can be proved the contribution(s) constituted fraud.
In my experience, most IRAs have individuals named as beneficiaries. When someone dies the institution will then distribute the IRA assets to each of the beneficiaries into an IRA BDA (beneficiary IRA). In the cases that I have seen this will keep the assets out of probate which means the creditors cannot touch it. This is one very important reason to always make sure your beneficiary information is up to date and don't ever just list "estate" or leave it blank. Even if you pick a charity it is better than letting it go through probate. Same thing should go for life insurance policies, joint accounts with right of survivorship, etc.. The only thing creditors can usually go after are things that do not have bene's named and that go through probate. Creditors are paid first from estate accounts before beneficiaries get anything.
Always consult legal advice from the professionals. This is a typical scenario above but sometimes there may be loopholes or missing details.
This is true. Historically income tax rates have changed substantially over the years for the same levels of income. We have our busy legislators to thank for this. Having a Roth essentially locks in today's tax rates / structure. A non-Roth assumes that the money will be taxed at a lower rate in the future, which is a pretty big assumption. Will it? Who knows. But I'd bet good ol' US $ that the tax rate structure will be quite different in 20-30 years. It always has been... Sometimes higher, sometimes lower. Ideally, I would like to have a mix of retirement accounts, both Roth and traditional for just this reason. There are several other reasons to have a Roth other than what future tax bracket you will be in. My personal opinion is that if you are eligible to contribute to a roth (there are income restrictions) and you don't need an immediate tax deduction, the roth will generally be your better long term bet. Yes, we could all use a reduction in our taxes this year, but I'd rather use a tax-free account rather than a tax-deferred account. Of course the tax-deferred account is better than nothing. Consider the comparison of SOME of the differences between a Roth IRA and a regular IRA (as always, consult your tax advisor BEFORE contributing to either): Regular IRA: - MAY be able to deduct current year contributions from current year Adjusted Gross Income (AGI). - Tax deferral of any interest earned or capital gains realized until distribution (withdrawl from the IRA). - May start taking distributions, without penalty, once you reach 59 1/2 years old. - MUST start taking Required Minimum Distributions (RMDs) at age 70 1/2. Roth IRA: - MAY NOT deduct contributions. - Any interest earned or capital gains realized that are distributed after age 59 1/2 are done so ****TAX FREE**** as long as you have held the contributions in the Roth for at least 5 years! - May start taking distributions, without penalty, once you reach 59 1/2 years old. - DO NOT HAVE TO take ANY Distributions EVER. All that money growing for the last how many years can stay in a non-taxable account if you never need it. This means it can then be passed to your heirs instead of having to be withdrawn and taxed while you're alive (as is the case for a regular IRA). If you are not making too much money to qualify, if you ARE getting a refund, if your tax bill is low enough that an immediate deduction will have little or no impact, and/or if you can simply afford to pay your taxes without it being a burden too high to handle, go with the roth. The one other factor can be age (5-10 years). If you are pretty close to retirement, a roth may not be appropriate. In most cases, I think it makes more sense to pay a little in taxes now (not take the AGI deduction) so you don't have to pay ANY later. Also, if you need money for any reason, you can always take out your principle(the monies that u placed into the Roth), without penalty- even prior to 5yr and 59 1/2 restrictions
Is there any way to get money out of an IRA without paying taxes?
There are some IRA withdrawals that are not penalized. If the entire amount is used for the purpose of higher education. If a maximum of $10,000 is used for the purchase of a first home. If the funds are needed to pay excessive medical bills. Payment for medical insurance premiums if the person becomes unemployed. If the IRA holder becomes totally and permanently disabled.
Can you collect unemployment benefits and withdraw from your IRA in Kentucky?
To qualify for unemployment compensation you have to have lost your job through no fault of your own, or quit with justifiable reasons. You also have to be ready, willing, and able to go to work immediately in a full time job which you are required to be seeking. Maternity leave under those conditions does not seem to apply.
Does the state of New York tax IRA distributions?
Qualifying pension and annity income includes:
periodic and lump-sum payments from an IRA, but not
payments derived from contributions made after you retired
up to $20,000 received after the age 59 1/2 are eligible to for the pension and annuity exclusion. enter on line 29 of IT-201.
Married taxpayers
If you both qualify, you and your spouse can each subtract up to
$20,000 of your own pension and annuity income. However, you
cannot claim any unused part of your spouse's exclusion.
The provisional Irish Republican Army, or IRA, is an outgrowth of an older group known as the Irish Republican Army, which fought an insurgency that successfully challenged British rule in the whole of Ireland in the early years of the twentieth century. The 1916-1921 warfare culminated in the creation of an independent Irish Free State in 1921. But in exchange for its independence, the old IRA's leadership agreed to allow Ireland's six northern counties to remain under British rule. Britain reconstituted these provinces as Ulster or Northern Ireland, and inside the IRA, significant elements rejected this partition and launched a civil war ultimately won by the rejectionists. Ties between the Free State and Britain remained chilly into the 1970s. Meanwhile, the old IRA maintained a low level campaign of violence aimed at reuniting Ireland. By the 1960s, however, its activities had dwindled significantly.
In the late 1960s, developments in Northern Ireland hastened the declining influence of the old guard. Reacting to discrimination against Catholics in the British-ruled province, civil rights marchers engaged in civil disobedience and were met by violent crackdowns from the Protestant-dominated police force, the Royal Ulster Constabulary. Tensions rose and Britain deployed regular army troops to the province's streets, ostensibly to protect the Catholic minority. These tensions split the IRA, too, which in 1969, the IRA splintered into two groups, the Dublin-based "officials," who advocated a united socialist Ireland by peaceful means, and the Belfast-based "provisionals," who vowed to use violence as a catalyst for unification.
At first, the provisional IRA, or "provos" conducted sniper attacks, assassinations, and several small bombings in the province, and appeared to have little public support. Then, in January 1972, British troops opened fire on a Catholic rally in Londonderry, killing fourteen unarmed people. PIRA recruitment soared, and the official wing of the organization fell away into obscurity. Their violent comrades proceeded to launch a series of bombing campaigns around Northern Ireland and in Britain targeting both military targets and civilian populations. So-called "Loyalist" groups determined to retain British rule sprung up to challenge them, and in the crossfire, together with British military and Northern Irish police forces, some 3,600 people would die before a peace accord was signed in the late 1990s. Today, the IRA's political wing, Sinn Fein, which means "Ourselves Alone" in the Gaelic language, holds various positions within the provincial Northern Irish government. The Royal Ulster Constabulary has been disbanded, Loyalist groups largely have laid down their arms, and most British troops have left the province.
Answerthe IRA has had various incarnations. the "old" IRA up until 1923 believed that the political route to Irish independence would not succeed without a military element. some believed that there should only be a military solution. after 1923 some of the IRA accepted the de facto partition of Ireland and entered politics in the republic as the fianna fail party led by eamon de valera. a minority persisted with the armed struggle until the 1990s - the provisional IRA led by gerry Adams etc. AnswerThe Irish Republican Army is an unsanctioned Irish military force that fights for Northern Ireland's independence from English occupation. They are a controoversial and violent group. You can find out more about them using the following link:en.wikipedia.org/wiki/Irish_Republican_Army - 82k -
What does R in IRA investment term mean?
Depends whether you're referring to an American retirement plan or an Irish terrorist organisation. Either "retirement" or "republican".
