Anyone under age 70½ with earned income can contribute to a traditional IRA. Contributions may be tax deductible, and taxes on earnings are deferred until you withdraw funds from the account, so your investments have the opportunity to compound faster.
A Simplified Employee Pension Plan, commonly known as a SEP IRA, is a retirement plan specifically designed for self-employed people and small-business owners. Its key features are highlighted below. When establishing a SEP IRA plan for your business, you and any eligible employees establish your own separate SEP IRA; employer contributions are then made into each eligible employee's SEP IRA.
For more specific questions, e-mail us at info@MidasFunds.com or
contact Midas Funds Shareholder Services at 1-800-400-MIDAS (6432), 8 a.m.-6 p.m. Eastern Time.
What is a Traditional IRA?
How much can I put in a Traditional IRA each year?
Under what circumstances can I take an early distribution (before age 59½) from my Traditional IRA without an early withdrawal tax penalty?
Can I take money from my Traditional IRA for a home purchase?
I contributed too much money to my Traditional IRA. What can I do if the tax year deadline has lapsed?
I do not want to convert my entire Traditional IRA to a Roth IRA. Can I convert only a portion of it to minimize my incurred tax?
If my Traditional IRA contains non-tax deductible contributions, can I convert just that part of my savings that is deductible to avoid paying taxes?
What is a Traditional IRA?
A Traditional IRA enables individuals to save earned income for retirement until age 70-½. Contributions can be tax deductible and taxes on earnings are deferred until the funds are withdrawn upon retirement.
Traditional IRAs can be funded by an individual for his/her own savings, an employer on behalf of an employee or by rollovers received from qualified retirement plans.
You are able to take a distribution from your Traditional IRA for
You can take a distribution only for the excess contribution amount but you will be penalized 6% for each year the excess contribution remained in your Traditional IRA.
When you take withdraw your funds, you will need to file IRS Form 5329.
Caution: Depending on your age, your withdrawal may result in double taxation for the same funds.
It is advised that you consult with a financial advisor for more details.
Yes. Partial conversions to Roth IRAs are allowed as are conversions from a number of different Traditional IRAs.
No. You can not designate which portion of your account is converted, even if you do a partial conversion.
The distribution of your funds will include a proportional mix of tax deductible and non-tax deductible contributions from ALL of your Traditional IRAs.