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SIMPLE IRA Rules
An Individual Retirement Account (IRA) is a type of investment vehicle which employed individuals could give contributions into, and this will serve as a retirement savings fund. There are rules and regulations for such investment vehicle, and it is important that the investors must be familiar with such rules. Learning the IRA basics will surely help the investors enjoy the most benefits of his retirement plan.
There are several types of IRA plans, and though the most popular plans are often limited to the Traditional and Roth IRAs, there are other plans that must also be considered such as the SIMPLE (Simplified Incentive Matched Plan for Employees) and SEP (Simplified Employee Pension) IRAs.
New Obama IRA Rules
Recently President Obama proposed two changes to the existing IRA rules. Tapping into the IRA basics, these two proposals are made to simplify the complicated aspects of IRA withdrawal rules. The proposed amendments can be found in a 151-page Treasury Department document that explains all the Administration’s fiscal 2012 tax proposals and would certainly be very beneficial for retirees and heirs of IRA’s.
The first proposed change aims to eliminate traps for non-spouse IRA heirs that Forbes has been constantly warning individuals.
Important 2011 IRA Dates
January 1, 2011
First day to contribute funds to your traditional or Roth IRA for tax year 2011.
For individuals UNDER the age of 50, the maximum contribution amount is $5,000.
For individuals that are 50 or OLDER, the maximum contribution amount is $6,000.
April 1, 2011
Usually the last day for an IRA owner to take the previous year’s Required Minimum Distribution that an individual chose to defer.
Beneficiary IRA Rules
After an account holder passes away and all rights are transferred to the account’s beneficiary, most of the rules of the IRA still apply to the new owner. Of course there would be additional factors to consider after you inherit a certain IRA account. Let’s say you are going to inherit a Roth IRA account then you should first take a look into its pre-existing rules.
Roth IRA Rules
Those who receive compensations taxed by the government are eligible to open a Roth IRA.
Early Withdrawal from IRA
Life happens, emergencies arise when we least expect it crippling our budget’s stability. These times we consider getting loans from various sources. We are even forced to take out money from our retirement plans such as IRA’s before it matures, although this is normally not permitted and certain fees and penalties are to be imposed with doing so. Early withdrawal penalties though have exemptions and we will discuss them later in this article.
SEP IRA Rules
Simplified Employee Pension (SEP) IRA is the way to go if you are a small employer (typically less than 10 employees and many times just on employee) looking for a retirement plan that is easy to install and administer. Most financial institutions will have the plan documents on file and it’s as easy as opening any investment or bank account. For those of you that do not know how easy it is, you just have to fill out a couple forms and you’re good to go.
Inherited IRA Rules
There are several types of IRA but let us look into the type most Americans opt to have – the Roth IRA. Several rules govern this type of account and most are from the IRA basics like contribution rules, and distribution rules.
IRA Contribution Rules
Roth IRA contribution limits 2011 are very simple. Every working individual who receives salaries, wages, bonuses, professional fees and even tips can contribute to a Roth IRA account as long as they don’t exceed the income limits set for IRA filers.
Roth IRA Income Limits
Saving money for retirement is a great idea. When it comes to retirement plans, one of the options you have is to start an IRA or Individual Retirement Account. If you have decided to start an IRA, you first have to understand some IRA basics. You have to understand that IRA isn’t the investment itself but rather a retirement account that holds your investments. There are basically three types of IRA namely the traditional IRA, Roth IRA and SIMPLE IRA.
IRA Contribution Limits 2011
It is always best to prepare for the future. If you want to live a comfortable life when you reach the age of retirement, then you need to have a retirement plan. One of the options you have to save for retirement is by starting an IRA account. IRA or Individual Retirement Account isn’t the investment itself. The IRA is a retirement account holding the investments.
IRA basically has two types.
2013 IRA Contribution Limits
Those who have IRA investments must be aware that there is an increase for the 2013 IRA contribution limits. This is definitely a good news for every IRA owner because this means that they are allowed to set aside a bigger amount of money for their retirement. This also means that they have bigger chances of achieving their financial goals upon reaching retirement age, and so they can enjoy more.
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