IRA Types
This IRA plan takes either deductible or nondeductible contributions. Contributions earn tax deferred income.
What is a Traditional IRA.
The age in which a person can take a distribution for any reason without paying a premature distribution penalty.
What is 59 1/2?
This is the maximum 2019 401(k) plan contribution amount for a worker under the age of 50.
What is $19,000?
This is the maximum amount someone is allowed to contribute to an IRA if they are under the age of 50 in 2019.
What is $6,000?
1. Mortgage lender
2. Credit card issuer
3. Homeowner's insurer
4. Cell phone carrier
5. Landlord
Who are some of the service providers that may use credit scores to decide whether a person can buy a service and/or what price he or she will pay?
This is an IRA plan that takes only nondeductible contributions. Contributions earn tax-free income if qualified.
What is a Roth IRA?
Minimum amounts that a retirement plan account owner must withdraw annually usually starting with the year that he or she reaches 70 1/2 years of age.
What is a Required Minimum Distribution (RMD)?
This is the highest marginal tax bracket in 2019.
What is 37%?
This is the 2019 IRA catch-up contribution limit for people who are 50 or older by the end of 2019.
What is $1,000?
Experian, Transunion and Equifax.
Who are the three major national credit bureaus?
An IRA that is appropriate for a small business that allows the employer to contribute up to 25% of a worker's annual salary into the plan, but the employees cannot add money to their own account.
What is a Simplified Employee Pension (SEP) IRA?
2. Health insurance expense while collecting unemployment benefits
3. College costs
4. First home purchase ($10K for singles, $20K for couples)
What are expenses that you can cover with early IRA withdrawals with no penalty?
This is the 2019 Standard Deduction amount for individuals filing "single."
What is $12,200?
This is the cut-off date to make a contribution for a certain tax year, for traditional and Roth IRA's.
What is the tax filing deadline?
The formula used to estimate how long it will take for savings to double.
What is the Rule of 72?
i.e. If 9% return then 72/9 = 8. It will take 8 years for money to double.
An IRA that is funded with after-tax contributions, enjoys tax-deferred growth, but the growth will be subject to income taxes upon withdrawal.
What is a Nondeductible IRA?
A 10% tax for taking a non-exempt distribution before the age of 59 1/2.
What is the Early Withdrawal Penalty?
This is the income cap on how much income you can earn and still be eligible to make a Roth 401(k) contribution.
What is unlimited?
An IRA contribution made on behalf of a nonworking spouse (or a spouse who has little income) using the income of the employed spouse.
What is a spousal IRA contribution?
The maximum earnings that will be subject to Social Security payroll tax in 2019.
What is $132,900
FYI, the maximum Social Security tax in 2019 would therefore be 6.2% x $132,900 o= $8,239.80 or double if you are self-employed
An IRA that is similar to a 401(k) but is available only to companies with fewer than 100 employees.
What is a Simple IRA?
A direct transfer of funds from your IRA custodian payable to a qualified charity as long as you are at least 70 1/2 years old.
What is a qualified charitable distribution?
This is the maximum 2019 modified AGI for a single person to be eligible for a full Roth IRA contribution.
What is $122,000?
This is the income cap on how much income you can earn and still be eligible to fund a traditional IRA.
What is unlimited?
The most you can gift to another individual in 2019 - who isn't your spouse - without having to file a gift tax return.
What is $15,000?