PBTC
Updated 9:09 AM CDT, Tue April 14, 2015
Published Under: Home Equity

- Do I have enough money saved up for retirement?
- How can I catch up if I’m behind?
- Contributions to this type of retirement account may be fully or partially deductible, and taxes are not assessed until you make withdrawals from it.
- Contribution limits are as follows for traditional IRAs: $5,500 under age 50; $6,500 if you are 50 or older.
- Withdrawals can be made from traditional IRAs fee-free once you reach age 59½.
- You can no longer make regular contributions to a traditional IRA once you reach age 70½ or older.
- The main difference between Roth and traditional IRAs is when taxes are assessed; traditional IRAs tax withdrawals, whereas contributions are taxed for Roth IRAs.
- While there are many rules regarding withdrawals from a Roth IRA, there are certain qualifying expenses you may be able to use contributed funds for without having to pay a fee:
- first-time home purchase, qualified education expenses, death or disability, unreimbursed medical expenses or health insurance if you are unemployed.
- Contribution limits: $5,500 under age 50; $6,500 if you are 50 or older.
- SEP IRAs are available to businesses of any size, even those who are self-employed
- They are easy to set up and operate
- SEP IRAs come with low administrative costs
- The employee is always 100 percent vested in (has total control of) all money in the account
- Contribution limits for SEP IRAs are as follows: 25 percent of an employee’s salary, or $53,000 for 2015
- Withdrawal rules are the same as the rules governing IRAs
- Your modified adjusted gross income must be $110,000 ($220,000 if filing jointly) in order to establish a Coverdell Education Savings Account
- Multiple accounts can be set up for one beneficiary
- Contribution limits of Coverdell Education Savings Accounts: $2,000 in any year for any beneficiary, regardless of the number of accounts set up in their name.
- Distributions are tax-free if they are not greater than the beneficiary’s adjusted qualified education expenses for the year
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