Individual Retirement Account

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Related to Individual Retirement Arrangement: individual retirement account, Individual retirement annuity

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 IRA monies may be placed in high-yield investments, with taxation deferred until money is withdrawn after retirement.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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3 trillion in individual retirement arrangements based on the yearend 2004 fair market value of their plans.
Thus, a Form 5498, Individual Retirement Arrangement Information, should be filed to report a contribution to an IRA even if the IRA is later revoked under Regs.
The Uniform Lifetime Table used by most individuals and the Joint Life and Last Survivor Expectancy Table for those with much younger spouses are in IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).
Additional project work will be supplemented by the Learn, Educate, Self-correct, Enforce (LESE) program; the Individual Retirement Arrangements program, which oversees payroll-deduction individual retirement accounts (IRAs), SEPs (simplified employee pension plans), SARSEPs (salary reduction simplified employee pension plans) and SIMPLEs (savings incentive match plans for employees); and the Form 5500-EZ Delinquent Filer Penalty Relief program for one-participant plans.
The IRS clarified how the recently announced change in how it interprets the statutory one-rollover-per-year rule for individual retirement arrangements (IRAs) affects 2014 rollovers and how the rules apply starting in 2015.
To see the IRS explanation of IRA recharacterizations, see Publication 590, Individual Retirement Arrangements (IRAs), p.
408-4(b)(4) (ii) and IRS Publication 590, Individual Retirement Arrangements (IRAs), provide that this limitation is applied on an IRA-by-IRA basis.

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