IRA Plans

There are several options that offer tax-exemptions on the federal level but not always on the state or local level. One example of an option that allows interest to be tax-exempt are municipal bonds. Tax laws vary by state so the tax-exemption may be void for a resident purchasing a bond in another state.

Yes, if it is a qualified Profit sharing plan, i.e. Pre-taxed or Post taxed.

Unfortunately Deferred Compensation is not considered earned income for IRA deduction limits. See IRS publication 590, page 7, table 1-1. Here it specifically has Def Comp plans listed in the column of income NOT included when figuring your IRA deduction.

Yes, you can roll over funds from a money purchase plan or a profit-sharing plan to a SEP IRA, provided the funds are eligible for rollover. This process typically involves direct transfer of the funds to avoid tax penalties. It's important to check with the plan administrators and ensure that all IRS regulations are followed during the rollover process. Consulting a financial advisor may also be beneficial to ensure compliance and optimal tax treatment.

Maybe contact the bank you created the account with. Why you would try to ask this question here is silly.

No, you pay taxes on interest no matter what.

No. Although IRA's can be invested into government securities, an IRA in general is a plan for individuals to save money for retirement. IRA's were created in 1974 with the Employee Retirement Income Security Act. IRA's have a tax advantage as an incentive for individuals to set aside income for retirement.

No, They are considered as "Earnings."

Technically, the SEP IRA and the Traditional IRA are the same type of account. The only difference is that the SEP IRA is allowed to receive employer contributions. Therefore, you can combine the SEP IRA into the Traditional IRA without any ramifications. When doing so, move the assets as a (nonreportable) trustee-to-trustee transfer.

You need to discuss that with your custodian. You may need to transfer your account to an different firm.

No, IRAs can not have a negative balance.

If your marginal tax rate is 10% X 2300 the amount of federal income tax would be $230. If your marginal tax rate is the maximum 35% X 2300 the amount of the income tax would be $805 on the approx 2300 taxable distribution amount from your IRA account at the age of 69. Then you have the 15%, 25%, 28% and 33% in between the 10% and the 35% rate amount.

other received a hospital debt for four grand and is worried that a hospital could sue her ira for it .shed pay it but is only living on social security and cant afford to pay out the last four grand in a hospital debt

Over the age of 59 1/2 you will not have to pay any 10 % early withdrawal penalty. The taxable amount of the distribution will be added to all of your other gross worldwide and subject to federal income tax on your 1040 income at your marginal tax rate and if your are drawing social security benefits from 50 % to 85 % of your SSB can also become taxable income at your marginal tax rate depending on $$$$$$ value of the amount of the IRA distribution amount.

To store and loan money

The trustee of your IRA would be the one that should be able to give you the correct time period that will be required for the trustee to take care of making the unqualified distribution amount available to you from your IRA account to you.

Yes. However, any amounts remaining in your IRA upon your death can be paid to your beneficiary or beneficiaries.

The same way as any other distributions from your IRA accounts using the information from the 1099-R Gross amount and taxable amount and the taxable amount is added to all of your gross income and taxed at your marginal tax rate.

When you have an IRA with after income tax dollars you are supposed to have a cost basis and also have the forms 8606 for each year that you made these after income contributions and that will be where you will have to get your information from to determine our cost basis that you would recover free of income tax over a period of years.

Form 8606

To designate contributions as nondeductible, you must file Form 8606.

Nondeductible Contributions

Failure to report nondeductible contributions

If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made.

Go to the IRS.gov web site and use the search box for Publication 17 (2009), Your Federal Income Tax go to chapter 17 Individual Retirement Arrangements (IRAs)

Click on the below Related Link

The answer is no. You would have to liquidate the IRA fund, pay possible taxes and penalties on it, and then put it into municipal bond.

However, you may be able to add a municipal bond into your IRA. If not, you can open another IRA account somewhere else that does allow it.

Only when you do not qualify to deduct your contribution from your total income an pay have to pay the income in the year of the contribution then you would have a post tax contribution amount in your IRA account after income tax cost basis in your IRA account.

In the US, an Individual Retirement Account.

In the UK, the Irish Republican Army, a former terrorist organisation.

In the year that you start taking distributions from your IRA account.