Archive for June, 2010
Ira Withdrawal Higher Education
June 2nd, 2010
Question: Is a traditional IRA for me?
I’m 19 years old presently pursuing an engineering degree. I know I am young but the earlier I start, the more I can make in the end. From what I’ve learned, the traditional IRA would be better for me because contributions are tax deductible, and I would think that that’s a definite benefit for a student working part-time. Also, as I expect to fall into a higher tax bracket at my retirement, I should switch over to a Roth at some point. That point, I figure, would be around when I am going to graduate school. Traditional IRAs allow for early withdrawals if they are for the purpose of higher education, so after I finish grad school, with the help of my IRA contributions to date, I can then switch to a Roth IRA.
Is there anything wrong with this plan, or a better way to go about it? Do traditional IRAs require a minimum ‘seasoning period’ before even early withdrawals can be made? Is there a minimum age, Adjusted Gross Income or annual contribution to even qualify for an IRA?
Answer: In most part you have asked and answered your
owh question.
Your probably going to have to invest with a mutual
fund. Most of them want a minimum of $2500. There
are a few that require less.
I advise that you do not take money out of the IRA
as you will pay a penalty for Early Withdrawal..
You can do your own reserch on the internet.
Just type in “kinds of IRA’s”
Economic Development in Iraq, Views from the Front Lines
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Ira Withdrawal Age 70
June 1st, 2010
Question: If I turn 70 years of age in August of 2007, when do I have to start withdrawals from my IRA?
Answer: Generally when you turn 70 1/2 you must start taking minimum required withdrawals from your IRA. In your case that would be February 2008.
But there is a loophole that nobody else mentioned! If you are currently employed, and continue working for that same employer past the age of 70 1/2, you do not have to start withdrawing from that account until you leave that company! You can’t leave that job and work for another company, nor have a layoff, the employment must be continuous with that employer. I know one man who did this until he was 76 and finally got tired of working, and had a real nice nest egg built up.
Tax Law, Real Estate & Credit Tips : IRA Distribution Rules