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  • 1. What is AGI and MAGI as it relates to IRAs? Views: 184
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    Terms of Use Adjusted Gross Income (AGI) AGI represents your taxable income. AGI is defined as gross income minus adjustments to income You can find your AGI at the bottom of page 1 on your income tax return, IRS Form 1040 or 1040A. On Form 1040EZ, adjusted gross income appears on line 4. Specifically, AGI is equal to the total income you report that’s subject to income tax such as earnings from your job, self-employment, dividends and interest from a bank account minus specific deduc  More...
  • 2. What is a Roth IRA? Who can contribute and what are the limits? Views: 152
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    Terms of Use What is a Roth IRA? The purpose of a Roth IRA is to put away money for retirement. To be classified a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. An IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. Roth IRAs are funded with after-tax dollars; the contributions are not tax deductible but qualified distributions are tax-free. You may be able to take a Saver's Tax Credit of 10% to 50% of the co  More...
  • 3. The Money Express article series introduction Views: 140
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    Putting You in Control of Your Financial Life Managing money is a critical life skill that many of us have never really mastered. Good money management skills help you get ahead financially and help prevent others from taking advantage of you. That's where The Money Express comes in. It's AmeriCU's way to provide useful financial information in understandable terms. You see, although some of the concepts can be a little tricky, we have written it to be understandable by all ages.   More...
  • 4. How do I transfer my IRA from one financial institution to another? Views: 140
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    Terms of Use A rollover is when you withdraw funds from an IRA or plan and contribute those funds to the same or another IRA or plan. A trustee-to-trustee transfer (often called a direct transfer or direct rollover) is when you never receive the IRA or plan funds. They are transferred directly from one financial institution to another without you ever touching the money. The general rule is that when you take a distribution from an IRA (or other tax-deferred retirement account) that you in  More...
  • 5. What is the difference between a Traditional IRA and a Roth IRA? Views: 134
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    Terms of Use IRAs are a great way for you to save for the future. Your IRA can consist of a range of investments from savings accounts, stocks, bonds, and certificates of deposit or share certificates. You can contribute up to a certain limit each year into your IRA and if you're over 50, you are allowed an additional catch up contribution. The tax advantages of a Traditional or Roth IRA depend on your annual income and whether you are covered by your company's retirement plan. B  More...
  • 6. What is a Traditional IRA? Who can contribute and what are the limits? Views: 133
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    Terms of Use An IRA is an Individual Retirement Account that provides several tax benefits . IRA accounts can be comprised of fixed income instruments, such as CDs/share certificates, bonds, stocks and mutual funds, to name just a few options. A Traditional IRA enables individuals to save money in a tax-deferred account. What that means is that the earnings from your IRA account will not be taxed until you begin taking money out of the account. Traditional IRA Snapshot Contributions: Tax-dedu  More...
  • 7. Are all distributions from a 401(k) subject to the 10% early withdrawal penalty? Views: 118
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    Terms of Use Generally yes , but there are situations where the IRS will waive the 10% early withdrawal penalty. Your un-reimbursed medical costs exceeds 7.5% of your income. There is a Qualified Domestic Relations Order (QDRO) from the courts that mandate funds from your account go to a former spouse, child, or dependent. You have elect a Section 72(t) retirement distribution. You are totally disabled. You’ve separated from service and were at least 55 years of age when you did so. You ha  More...
  • 8. What is a 401(k) plan? Views: 115
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    Terms of Use Definition: A 401(k) plan is offered by employers to allow you to set aside money for retirement on a tax-advantaged basis. You can contribute pre-tax dollars and then invest those dollars in the investment options provided by your employer for the purpose of saving for retirement. The earnings on your investments are tax-deferred until retirement. Your employer may also make matching contributions to your account. 401(k) plan highlights: 401(k) Plan Limits 2019 Elective Deferrals $  More...
  • 9. What happens to my Traditional IRA if I die? Views: 113
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    Terms of Use: The benefits within your IRA will pass directly to your named beneficiaries without being subject to the estate probate process. Investments in a traditional IRA or 401(k) retain most of their character as an IRA or 401(k), but they generally must be withdrawn from those accounts over time. The timing of withdrawals depends on whether your spouse inherits it or another beneficiary (such as your child). If your primary beneficiary is your spouse, he/she has the option of assu  More...
  • 10. Can I roll over a 401(k) distribution to a Roth IRA? Views: 112
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    Terms of Use Not directly, but you can roll over a 401(k) distribution to a Traditional IRA and then convert to a Roth IRA.

All information provided through this site is intended to be accurate. However, there may be inaccuracies from time to time which we will make every attempt to correct immediately. Information provided is intended to assist you in making decisions and does not eliminate the need to discuss your particular circumstances with a qualified professional.