Retirement Planning | VI. IRAs and SEPs
What is the limit of contributions to a traditional IRA and Roth IRA for 2011?
$5,000 (plus Catch-Up Limit of $1,000 if over age 50)
Earned income includes any type of compensation where the individual has performed some level of services for an employer or is considered self-employed.
Penalties associated with IRA accounts:
- Distributions made prior to 59 1/2 are subject to the 10% premature distribution penalty
- There is a 50% excise tax on required minimum distribution not made by April 1 of the year following the year in which age 70 1/2 is attained
Variable life insurance cannot be held in an IRA account as an investment
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page revision: 2, last edited: 06 Feb 2016 18:59