Funding an IRA for Children
With some simple planning, you can turn your child’s summer of mowing lawns into a well-funded retirement account
With some simple planning, you can turn your child’s summer of mowing lawns into a well-funded retirement account
Traditional IRAs allow you to save for retirement on a tax deferred basis, while Roth IRAs are funded with after-tax contributions.
Once you reach 70½, you are required to withdraw from your IRA. How much do you withdraw? The IRS has simplified the calculation with Life Expectancy Tables to help you calculate your withdrawal.
A qualified domestic relations order allows retirement assets to be transferred to the other party’s retirement plan or IRA free of any current tax liability.
Qualified retirement plans provide a method for business owners and employees to save money, tax deferred, for their retirement.
When investing in an IRA, you have limitless choices, unlike an employer-sponsored plan. We have some suggestions to get you started.
We provide some guidance for the novice-investor on how to invest the money you’re saving.
The first place to start investing is your employer-sponsored retirement plan, but if you don’t have one or not eligible yet, there are other options.
When rolling assets from a retirement plan to an IRA, you need to careful not to take possession of the funds, otherwise you could trigger a taxable event.
One unique feature of a Roth IRA is that distributions are not mandatory during the account owner’s lifetime, so the account can be left to heirs.