The Money Farm Team

Investing in a Roth IRA is only permitted if your contributions do not go to interest-bearing investments (like as bonds) or to Haram businesses (companies involved in gambling, alcohol etc.) Investing is essential if you want to grow your wealth in the future. It’s a lousy idea to put money in a savings account and […]

Traditional IRAs work similarly to personalized pensions in that they limit and regulate access to money in exchange for significant tax benefits. Roth IRAs are similar to ordinary investment accounts, but with the added bonus of tax benefits: they have less limits, but also fewer tax breaks. Which IRA to choose depends on whether you

Your contribution to a traditional IRA is always tax-deductible, regardless of your modified adjusted gross income, if you are not covered by an employer-sponsored retirement plan at work (MAGI). You may not be able to deduct your contribution from your taxes if either you or your spouse is insured by an employer. The restrictions alter

If you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain thresholds, your deduction may be limited. If you (and your spouse, if you’re married) don’t have access to a retirement plan at work, you can deduct the whole amount of your salary. If

Withdrawals from a Roth IRA are tax-free if you are 59 1/2 years old or older and have had the account for at least five years. Withdrawals from traditional IRAs are taxed as ordinary income in the year they are made, depending on your tax level. How do I figure the taxable amount of an

Deposit accounts held in a regular or Roth IRA are insured by the FDIC and NCUA. Deposits in SEP-IRAs and SIMPLE-IRAs are also insured by the FDIC. For insurance purposes, the agencies treat all IRAs you own at a single financial institution as a single account. For example, if you owned $100,000 in a Roth

The ability to take your individual retirement account (IRA) in a lawsuit is largely determined by your state of residency and the judgment in question. There are no government safeguards in place to protect your IRA from being seized in the event of a lawsuit. Can I lose my IRA in a lawsuit? If you

Depending on the form of IRA, this statute provides different levels of protection. Traditional IRAs and Roth IRAs are currently insured up to $1 million in value. In a bankruptcy, SEP IRAs, SIMPLE IRAs, and most rollover IRAs are totally protected from creditors, regardless of their value. Can you lose your IRA in bankruptcy? IRAs

Is a traditional IRA the same as a rollover IRA? A traditional IRA can be rolled over into a rollover IRA. If you want to roll money from a Roth 401(k), it can also be a Roth IRA (k). Is my rollover IRA a traditional IRA? A rollover IRA is a traditional IRA that was

If you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain thresholds, your deduction may be limited. If you (and your spouse, if you’re married) don’t have access to a retirement plan at work, you can deduct the whole amount of your salary. If