12. Vocabulary - Self-directed retirement programs

With no special record-keeping requirements or forms to file, an IRA can be an excellent vehicle for sheltering income from taxes. (______)

If you change jobs, arrange for your IRA funds to transfer from one firm to another. (______)

Couples filing jointly with adjusted gross incomes of up to $193,000 ($131,000 for single filers) can open this type of account, without regard to participation in an employer retirement program. (______)

With this type of account, earnings accrue tax free and are not subject to tax until they are withdrawn (after the individual reaches age 59 1/2). (______)

Couples filing jointly (even when participating in a retirement plan at their places of work) can open this type of account as long as their adjusted gross income is less than $193,000. (______)

12. Vocabulary - Self-directed retirement programs What does it mean? The retirement planning conversations usually involve the employer-employee relationship. For individuals who are self-employed, self-directed retirement programs also allow them to plan for their retirement. Match the self-directed retirement program terms on the right with the descriptions of the terms on the left. (Hint: These are not necessarily complete definitions, but there is only one possible answer for each term.) Individual retirement arrangement (or account) Description Investment decisions With no special record-keeping requirements or forms to file, an IRA can be an excellent vehicle for Keogh plans sheltering income from taxes. Nondeductible IRA If you change jobs, arrange for your IRA funds to transfer from one firm to another. Rollover Roth IRA Couples filing jointly with adjusted gross incomes of up to $193,000 ($131,000 for single filers) can open this type of account, without regard to participation in an employer retirement program. Self-directed retirement plans SEP plan With this type of account, earnings accrue tax free and are not subject to tax until they are withdrawn (after the individual reaches age 59 1/2). Traditional IRA Withdrawals Couples filing jointly (even when participating in a retirement plan at their places of work) can open this type of account as long as their adjusted gross income is less than $ 193,000