IRA Basics
What is an IRA?
An account used to set aside funds for retirement
A Traditional IRA is tax _______ when distributed? Assuming no penalties, etc.
Deductible
When can you make contributions to an IRA for the current year?
Jan 1 of the following year to April 15th of the current year
What is the usual federal and state withholding percentages?
10% and 5%
What is the product we use for IRAs?
CD’s
What does IRA stand for?
Individual Retirement Account
A ROTH IRA is tax ___ at distribution? Assuming no penalties, etc
Free!!!
What is the contribution limit for someone aged 49 or younger?
6,000
What is an RDM?
Required Mininum Distribution
Who is the IRA officer for Hills Bank?
Cindy Michel
Who is eligible to have an IRA?
Anyone with earned income
A tax advantaged account used to set aside money for health related expenses
HSA
What is the contribution limit per year for someone aged 50 or better?
7,000
When do you have to take an RDM?
72
Are IRA’s covered by FDIC insurance?
Yes!
True or False: You can have more than one owner on a IRA
False!
This is a non-qualified employer plan where the employer makes contributions for qualifying employees up to 25% of compensation
SEP IRA (Simplified Employee Pension)
What would be a correct response to someone asking how much they should contribute to an IRA?
Consult a tax professional
When can you start taking out of your IRA with no penalty?
59 1/2
When money is taken out of an employer sponsored retirement plan into a IRA is called a
Rollover
Can you have an IRA with no beneficiaries?
No, has to at least have one
What is a CESA? Who is eligible to make contributions?
Coverdell Education Savings Accounts. This is a tax-advantaged fund that allows you to save for education expenses including K-12 private school tuition as well as college expenses.
What is the penalty for excess contributions to an IRA?
6%
What is the penalty for taking money out before 59 1/2?
10%
What is the IRA hunt group extension
1502