By Denise Appleby

Let's recap:

  • Any individual who has taxable compensation during the year and will not reach age 70.5 by the end of the year may make an IRA contribution for the year.
  • Traditional IRAs must be established with institutions that have received IRS approval, such as most banks, brokerages and savings institutions.
  • A Traditional IRA can be funded from your own contributions, spousal contributions, transfers or rollovers.
  • All regular IRA contributions must be made in cash.
  • IRAs cannot invest in collectibles, which include art works, rugs, antiques, metals, gems, stamps, coins, alcoholic beverages and certain other tangible personal property.
  • The tax and penalty treatment applicable to distributions from a Traditional IRA is determined by the IRA owner's age at the time of withdrawal and the tax deductibility treatment of contributions.







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