Traditional IRA
Pre-Tax
The most common types of funds that make up the contributions for a Traditional IRA.
After Tax Dollars
The type of funds that make up contributions to a Roth IRA.
April 15th
The common deadline for prior year contributions.
Age 59 1/2
What is the age at which individuals can take distributions from IRA Accounts without an early withdrawal penalty.
Earning Income
What is the requirement for being able to contribute to an IRA. A person must be actively working.
Funds may be Tax Deductible.
What is the primary benefit of a Traditional IRA?
Interest Income
What is the portion of a Roth IRA that is tax deferred.
6500.00
What is the annual contribution limit if under the age of 50?
Age 70 1/2
Signature Required
What is every IRA transaction we process requires member's signature.
Retirement Account, Pre-Tax, Tax Deferred
What is a basic description of a Traditional IRA: A retirement account funded with Pre-Tax earnings, who's earnings are tax deferred.
5-Year Test
One of the two things required for a withdrawal to be a Qualified Distribution from a Roth IRA.
Must meet the 5 Yr test and: be 59 1/2, or Death, and first time home buyer, plus a few more exceptions.
7,500.00
What is the annual contribution limit if over age 50.
Age 72.
What is the age at which individuals who turned 72 after 2020 must begin taking their RMD's.
Primary and Contingent Beneficiary
What is helpful to designate on a Trad. and a Roth IRA. Otherwise funds will go to the Deceased's Estate.
401K Funds
What are received into a Traditional IRA As a Rollover Contribution.
Required Minimum Distribution
What is NOT required with a Roth IRA.
6%
What is the penalty for excess contributions in a given year that are not removed before October 15th.
50%
What is the IRS penalty for an individual who does not take their RMD. (50% of what the RMD should have been)
Ascensus
What is the company that helps manage our IRA portfolio: Tax reporting, Forms in compliance, necessary for all IRA transactions.
Age 73
What is the new RMD age effective 2023 by the passing of the Secure Act 2.0
Spousal Consent
What is needed when an IRA Owner's spouse is not the ONLY Primary Beneficiary?
Death Notice
What is the form in IRA Direct to process when an IRA Owner is deceased, in order to disburse funds to the beneficiaries.
10%
The penalty for an early withdrawal on a Traditional or Roth IRA, that is paid to the IRS.
FD5
What is the PrimeWay's archive system where ALL IRA Documents need to be scanned for compliance and future reference.