Individual Retirement Account


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Related to Individual Retirement Account: Roth Individual Retirement Account

Individual Retirement Account

(IRA), tax-sheltered retirement plan, originally created (1974) to assist individuals not covered by company pensions. Under the U.S. tax law of 1981, IRA provisions were liberalized to allow individuals to contribute up to $2,000 per year (up from $1,500) to such accounts, and coverage was extended to employees already in corporate pension programs. These contributions are deductible from federal income taxincome tax,
assessment levied upon individual or corporate incomes. Although personal incomes were occasionally taxed in medieval Italian cities, the income tax is essentially a modern form of taxation.
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 payments. IRA monies may be placed in high-yield investments, with taxation deferred until money is withdrawn after retirement. In 1998, Congress instituted the Roth IRA, in which the earnings are tax-free but there are no tax-deduction benefits for the contributions made each year.
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The target audience were relatively unsophisticated individuals who had Individual Retirement Accounts.
Individual retirement accounts and 401(k) plans have also been curbed by recent tax law changes, but employee contributions to 401(k) plans exceeded $25 billion in 1988.
It is designed to provide guidance on planning for and handling the reporting of distributions from qualified plans and individual retirement accounts.
s Fidelity Investments, the nation's largest mutual fund company, sales of individual retirement accounts are 14 times stronger so far this year than in the first two months of 1995, said Robyn Tice, a spokeswoman.
JSCI clients include individuals, corporations, banks, thrift institutions, pension and profit sharing plans, Individual Retirement Accounts, Simplified Employee Pension accounts, trusts, estates, charitable organizations and other business entities.
For instance, Jennings can minimize his future tax liabilities by opening a 529 account for education purposes, or opening tax deferrable individual retirement accounts.
For one obvious illustration of this problem, consider two common investment vehicles - tax-free municipal bonds and tax-deferred retirement savings programs such as individual retirement accounts, Keogh plans and 401(k) plans.
Individual retirement accounts (IRAs) are personal retirement savings plans that allow eligible individuals to contribute up to $2,000 per year, both deductibly and nondeductibly with the benefit of tax deferral on the growth and on pretax contributions until withdrawal.
PSB, The Marketing SuperSource(R), a full-service, end-to-end marketing solutions provider for financial institutions, introduced two comprehensive marketing campaigns focused on Bump-UP Certificates and Individual Retirement Accounts (IRA).
These include 401(k) and 403(b) plans, Individual Retirement Accounts (IRAs), Keogh plans, and annuity products, which can also provide guaranteed lifetime retirement income.
There are advantages to both kinds of individual retirement accounts, but a Roth IRA may be the smarter move.
They included a provision to tighten the definition of operating losses eligible for a special 10-year carryback, a provision to modify the rollover rules for Roth individual retirement accounts (IRAs), and a four-year extension of the current user fees the Service charges for letter rulings.

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