IRAs
Why are they considered investments?
Because you or financial advisor select the stocks or bonds you want for your deposits.
When and why was this plan created?
As part of the Taxpayer Relief Act of 1997.
What kind of contributions can you make with Traditional IRAs?
Yearly
Where do your contributions come from with this plan?
Your salary.
Why are they considered Savings accounts?
Because you deposit money into them
When do you pay taxes on this account?
Before you make the deposits.
With this plan can you make unlimited deposits?
No, the gov. limits the amount of deposits.
What types of eligibility requirements does this plan have?
Full time employee and completing a certain time
Why do you need to do your homework when investing on IRAs?
Because you might be able to take some risks when you are young but as you get closer to retirement you will not have enough time to recover from financial loses.
Are your contributions taxed when you make your deposits?
No. You pay taxes when you take the money out for retirement.
How is tax handled with this plan?
Pre-tax contribution