What is an IRA?What is an IRA?

An IRA is an Individual Retirement An IRA is an Individual Retirement Account.Account.

Which means that it’s a tax-deferred Which means that it’s a tax-deferred retirement account for an individual that retirement account for an individual that wants to set money aside for them when wants to set money aside for them when their done working. their done working.

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How does an IRA work?How does an IRA work?

An individual retirement account allows An individual retirement account allows Americans to enjoy substantial tax benefits Americans to enjoy substantial tax benefits on retirement savings. on retirement savings.

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What are IRAs invested in?What are IRAs invested in?

They can be invested in any type of They can be invested in any type of publicly traded security, including stocks, publicly traded security, including stocks, bonds, and mutual funds.bonds, and mutual funds.

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What are the different types of What are the different types of IRAs?IRAs?

Traditional IRATraditional IRARoth IRARoth IRASEP IRASEP IRA

Is there any insurance on IRAs?Is there any insurance on IRAs?

There is no way to make a tax-free There is no way to make a tax-free transfer of the balance from an IRA to a transfer of the balance from an IRA to a life insurance policy.life insurance policy.

The tax must always be paid.The tax must always be paid.http://www.annuityadvantage.com/http://www.annuityadvantage.com/

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Who is eligible to open an IRA?Who is eligible to open an IRA?

Anyone can open an IRA, if young adults Anyone can open an IRA, if young adults want to open an IRA you would need to want to open an IRA you would need to have a family member that could bring have a family member that could bring you. you.

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How much can I contribute to my How much can I contribute to my IRA?IRA?

It changes every year depending on which It changes every year depending on which IRA you use. IRA you use.

Traditional and Roth IRA Traditional and Roth IRA : Individuals under 50 can : Individuals under 50 can contribute $5,000 and people over 50 can contribute up contribute $5,000 and people over 50 can contribute up to $6,000.to $6,000.

SEP IRASEP IRA: people can contribute up to 25% of your total : people can contribute up to 25% of your total income to your SEP IRA. income to your SEP IRA.

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I am leaving a company and taking my 401K proceeds. I am leaving a company and taking my 401K proceeds. How much time do I have to deposit them in an IRA before How much time do I have to deposit them in an IRA before

they are taxed as income?they are taxed as income? You have 60 days to roll over your distribution if You have 60 days to roll over your distribution if

the money was given to you. The best way to do the money was given to you. The best way to do this is to have the company administrator write a this is to have the company administrator write a check to the IRA ROLLOVER account directly, check to the IRA ROLLOVER account directly, this makes sure that nothing is withheld in taxes, this makes sure that nothing is withheld in taxes, and is much cleaner. Keep in mind that you can and is much cleaner. Keep in mind that you can do only one rollover per year.do only one rollover per year.

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Can I have more then one IRA?Can I have more then one IRA?

Yes you can, you can use one IRA for Yes you can, you can use one IRA for long-term savings, short-term savings and long-term savings, short-term savings and intermediate- term savings.intermediate- term savings.

Having more then one IRA can cause you Having more then one IRA can cause you problems. Such as, financial problems and problems. Such as, financial problems and bankruptcy. bankruptcy.

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What fees are associated with What fees are associated with IRAs?IRAs?

There's not really many, the popular one is There's not really many, the popular one is the management fees, which you pay the management fees, which you pay $40/month.$40/month.

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Can I sell the stock in my brokerage account Can I sell the stock in my brokerage account and then but it in my IRA?and then but it in my IRA?

An IRA An IRA can buycan buy pretty much anything they pretty much anything they sellsell – – stocksstocks, bonds, and mutual funds. , bonds, and mutual funds. Only if you have your IRA in a Only if you have your IRA in a brokerage brokerage accountaccount. .

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Are educational and 529 the same?Are educational and 529 the same?

An educational IRA is a savings plan for An educational IRA is a savings plan for higher education.higher education.

A 529 Plan is an education savings plan.A 529 Plan is an education savings plan.So I would say they are the same because So I would say they are the same because

they all have to do with education. they all have to do with education.

What happens when I contribute What happens when I contribute too much in my IRA?too much in my IRA?

The average amount you should have in The average amount you should have in your IRA is $12,000.your IRA is $12,000.

If you have had an account for 15 years or If you have had an account for 15 years or more years you add more to your IRA. more years you add more to your IRA.

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What are the implications for my estate What are the implications for my estate if I have my investments in my IRA?if I have my investments in my IRA?

You You cancan make make penaltypenalty-free withdrawals -free withdrawals from a 401(k) at from a 401(k) at ageage 55. 55.

After the age of 55 you would have to pay After the age of 55 you would have to pay the 10% if you take money out. the 10% if you take money out.

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What are the benefits of making a What are the benefits of making a conversion from a Traditional IRA conversion from a Traditional IRA

to a Roth IRA?to a Roth IRA? Traditional IRA benefits isTraditional IRA benefits is: you can deduct all your IRA : you can deduct all your IRA

contributions from your income. That means you don’t pay tax on contributions from your income. That means you don’t pay tax on the amount you contribute until you withdraw money from the the amount you contribute until you withdraw money from the account during retirement. account during retirement.

Roth IRA benefits isRoth IRA benefits is: there’s no age deadline for making : there’s no age deadline for making

contributions—you can put money in it for the rest of your life.contributions—you can put money in it for the rest of your life. The benefits from a traditional IRA to Roth IRA are very good The benefits from a traditional IRA to Roth IRA are very good

because you can put money in your Roth IRA for as long as you because you can put money in your Roth IRA for as long as you want and you can at any age. want and you can at any age.

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What are the disadvantages from a What are the disadvantages from a Traditional IRA to a Roth IRA?Traditional IRA to a Roth IRA?

Disadvantages for a Traditional IRA isDisadvantages for a Traditional IRA is: it requires IRA : it requires IRA holders to withdraw a certain portion of their funds, if holders to withdraw a certain portion of their funds, if they needed more they can’t take as much out as they they needed more they can’t take as much out as they

need.need. Disadvantages for a Roth IRA isDisadvantages for a Roth IRA is: Not everyone : Not everyone

qualifies for a Roth IRA because of the income limits. qualifies for a Roth IRA because of the income limits.

http://cashmoneylife.com/2008/02/06/tradithttp://cashmoneylife.com/2008/02/06/traditional-ira-vs-roth-ira/ional-ira-vs-roth-ira/

How do you decide if a IRA is right How do you decide if a IRA is right for you?for you?

IRAs is right for anyone you just need to IRAs is right for anyone you just need to decide which one is the right one for you decide which one is the right one for you to use. to use.

There's Traditional IRA, Roth IRA, SEP There's Traditional IRA, Roth IRA, SEP IRA and many more and each is for a IRA and many more and each is for a different use. different use.

How do I open an IRA?How do I open an IRA? The first thing that you should do is to find and select a The first thing that you should do is to find and select a

bank for your IRA. bank for your IRA. Once you have selected a bank, you need to fill out all Once you have selected a bank, you need to fill out all

the necessary forms to open the IRA.the necessary forms to open the IRA. Once you have the account number, you should set Once you have the account number, you should set

aside money so that you can deposit it into your IRA aside money so that you can deposit it into your IRA

account.account. After funding your IRA, make sure you give the After funding your IRA, make sure you give the

necessary instructions to the bank to invest the moneynecessary instructions to the bank to invest the money..http://ezinearticles.com/?Simple-Steps-on-http://ezinearticles.com/?Simple-Steps-on-

How-to-Open-an-IRA&id=1747950How-to-Open-an-IRA&id=1747950

What is an IRA rollover or What is an IRA rollover or conversion? When do I need to do conversion? When do I need to do

this?this? (rollover) The movement of IRA funds from one (rollover) The movement of IRA funds from one

IRA provider to the account owner, and then to IRA provider to the account owner, and then to another IRA provider.another IRA provider.

60 days to complete this transaction before the 60 days to complete this transaction before the transaction is considered a taxable distribution transaction is considered a taxable distribution of funds.of funds.

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Can I borrow funds from my IRA?Can I borrow funds from my IRA?

Yes you can borrow money out of your Yes you can borrow money out of your IRA for example you can pull out money IRA for example you can pull out money for a short term, you can take this money for a short term, you can take this money for 60 days have to put it back into your for 60 days have to put it back into your IRA account. IRA account.

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Do you pay taxes on money in an Do you pay taxes on money in an IRA? If so, when and how much?IRA? If so, when and how much?

(traditional IRA) you don't pay taxes until (traditional IRA) you don't pay taxes until you withdraw your funds you withdraw your funds

(Roth IRA) you pay your taxes upfront, (Roth IRA) you pay your taxes upfront, which means your Roth IRA contributions which means your Roth IRA contributions are made with regularly taxed income.are made with regularly taxed income.

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Other information on an IRA.Other information on an IRA.

How many IRAs can you have?How many IRAs can you have? You You can have both Traditional and Roth can have both Traditional and Roth IRAs.IRAs.

What's the average age people What's the average age people usually start an IRA?usually start an IRA? Around 18 years Around 18 years old.old.

QuizQuizWhat is an IRA?What is an IRA?How does an IRA work?How does an IRA work?What are the different types of IRAs?What are the different types of IRAs?What are IRAs invested in?What are IRAs invested in?What’s the age that allows you to open an What’s the age that allows you to open an

IRA account?IRA account?

Answers for quizAnswers for quiz

An IRA is an Individual Retirement Account.An IRA is an Individual Retirement Account. An individual retirement account allows Americans to An individual retirement account allows Americans to

enjoy substantial tax benefits on retirement savings. enjoy substantial tax benefits on retirement savings. Traditional IRA, Roth IRA, SEP IRATraditional IRA, Roth IRA, SEP IRA They can be invested in any type of publicly traded security, They can be invested in any type of publicly traded security,

including stocks, bonds, and mutual funds.including stocks, bonds, and mutual funds.

Anyone can open an IRA, if young adults want to open Anyone can open an IRA, if young adults want to open an IRA you would need to have a family member that an IRA you would need to have a family member that could bring you. could bring you.