IRAs

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

In many circumstances, a Roth IRA is a better option than a 401(k) retirement plan because it provides a more flexible investment vehicle with more tax advantages—especially if you expect to be in a higher tax band in the future. A 401(k) is hard to beat if your income is too high to contribute to

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

An early withdrawal from a 401(k) or IRA can usually be made when you have “an immediate and substantial financial need,” as defined by the IRS. What are the scenarios in which you might be able to take a 401(k) distribution before reaching the age of 591/2? Here are several examples: If you have a

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

Both 401(k) and Roth IRA investment growth is tax-deferred until retirement. This is beneficial to most participants since, once they retire, they tend to fall into a lower tax rate, which can result in significant tax savings. It’s up to you to decide whether or not to open a Roth IRA account, especially if your