Introduction to Individual Retirement Accounts
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For those who do not have a retirement plan at work, the IRA can be an effective alternative.
What you will learn
- How You Can Fund Your IRA
- How to Contribute to an IRA
- How and When IRA Contributions Can Be Deducted from Taxable Income
- Limits on Deducting IRA Contributions if You Are Single or Married and Filing Separately
- Limits on Deducting IRA Contributions If You Are Married and Filing Jointly
- How IRAs Are Taxed
- Taxing of Deductible and Non-Deductible IRA Contributions
- Taxes on Excess IRA Contributions
- IRA Rollovers
- Premature Withdrawals and Insufficient Distributions from IRAs
What do you know?
Introduction to Individual Retirement Accounts
Individuals can set up their own accounts for retirement through individual retirement accounts (IRAs). They can set them up in a variety of investments, and the income the accounts earn is not taxable while it is in the accounts. The money contributed to an IRA may also be tax-deductible. Contributions that are deductible will, however, be taxed when money is withdrawn from the account.
The IRS has very specific rules regulating the contribution amounts and deductibility thereof. It also has rules regarding withdrawals and when they can be made and how they are taxed. IRAs are an excellent way to save for retirement, but you should be aware of the rules, benefits, and drawbacks.
This tutorial will cover only the traditional IRA.