Annual Limits
$6,500
What is annual IRA contribution limit?
The annual cost of owning a Mutual Fund or ETF
What is expense ratio?
CFP
What is Certified Financial Planner?
Name the 3 buckets.
What are tax-deferred, tax-free, & taxable?
The name of the income tax bracket in which you are currently paying tax on every additional dollar.
What is Marginal Tax Bracket?
The age at which you can make catch-up contributions your IRA and 401ks.
What is 50?
The three major stock indices.
What is Dow Jones (Dow), Standard & Poor's 500 (S&P 500), and the Nasdaq Composite (Nasdaq)?
IRS
Contributions into this type of IRA are already taxed, and it grows tax-free.
What is Roth IRA?
The maximum % of tax you can pay on Long Term Capital Gains.
What is 20%?
If your 401k plan allows, you can make these types of contributions once you max out your Pre-tax, or Roth contributions.
What is after-tax?
When a mutual fund is sold, the cash proceeds are available in this many days.
What is 1? (T + 1)
*Most mutual funds, there are exceptions.
ETF
What is Exchange Traded Fund?
Withdrawals from a Traditional/Rollover IRA are taxed at this type of tax rate.
What is income tax rate?
The two types of dividends with regards to their taxation.
What is qualified and non-qualified?
The annual limit on Roth Conversions.
What is unlimited?
When a stock or ETF is sold, the cash proceeds are available in this many days.
What is 2? (T + 2)
MRD
What is Minimum Required Distribution?
The age at which withdrawals from an IRA are penalty-free.
Also, the age at which you are required to start taking withdrawals from a Traditional/Rollover IRA?
What is 59.5, & 72?
Note: 73 is also acceptable. (73 if you reach age 72 after Dec. 31, 2022).
The portion of income not subject to tax that can be used to reduce your tax bill.
What is standard deduction?
For Estate Planning, this is the amount of the Annual Gift Tax Exclusion (for 2023).
What is $17,000?
When a bond matures, it always matures at this value.
What is par?
IRA
What is Individual Retirement Arrangement (commonly confused with Individual Retirement Account).
This occurs when a non-deductible contribution is made to an IRA, and then subsequently converted to a Roth IRA.
What is back-door Roth Contribution?
The average income tax rate on each dollar of income.
What is effective tax rate?