Traditional IRA
True or False.
This type of retirement plan taxes distributions as ordinary income and requires RMDs starting at age 73.
True
When do you pay taxes on the money you put into a 401k plan?
When you Withdraw it
To withdraw from a Roth IRA account, how old must you be?
59½
Do you have to pay taxes when you withdraw from a Roth 401k account?
No
If the account has been open for at least 5 years and you’re over 59½, the money is tax-free.
What was our last presentation on?
1. Money Purchase Pension Plans
2. ESOPs
3. Target Benefit Pension Plans
Target Benefit Pension Plans
How are distributions from a Traditional IRA taxed?
They are taxed as Ordinary Income.
If you take money out before age 59½, what is the withdrawal penalty?
1. 8%
2. 10%
3. 7%
10%
What is a key difference between a Roth IRA and a Traditional IRA in terms of taxation?
Roth IRA contributions are made with after-tax dollars and withdrawals are tax-free, while Traditional IRA contributions are tax-deferred, and withdrawals are taxed as ordinary income
Do you have to take Required Minimum Distributions (RMDs) from a Roth 401(k)?
No
You do not need to start taking RMDs at the age 73 on a Roth 401(k), unlike an IRA
When is professor HW's birthday?
January 16th