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Retirement
| Question | Answer |
|---|---|
| Individual retirement accounts (IRA) | Must have earned income Non working spouse can make contributions based upon earned income of spouse (spousal IRA) |
| IRA contributions | Up to 100% off earned income Subject to annual premiums Catch up contributions age 50 or over |
| Deductibility | You can deduct your contributions from taxes Phase out if deduction based on adjusted gross income (AGI) No deduction if income above max AGI |
| IRA funding | Investment cannot be put in life insurance Artwork antiques stamps or coin collections Gold or silver bullion US minted coins okay |
| Premature withdrawals | Withdrawals taken before 59 1/2 May have a penalty tax and income tax applied There are ways penalty can be waived |
| Withdrawals that avoid tax penalty | Down payment of first home College education Health insurance if unemployed |