CHAPTER 22
The IRA 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“You can plan for tomorrow today, but you can’t plan for today tomorrow.”
Do I Need to Read This Chapter? ●
Am I eligible for an IRA?
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Am I aware of the recent changes in IRA rules?
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Do I know that, under certain conditions, I can withdraw from my IRA before age 591⁄2 without penalty?
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Am I clear on the rules for mandatory IRA withdrawals after age 701⁄2?
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Have I investigated various investment options for my IRA?
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Do I understand the difference between transfers and rollovers?
he individual retirement account (IRA) is a method of investment originally designed to help individuals not covered by company pension plans save for their retirement. On January 1, 1982, the law governing IRAs was changed to make them available to anyone with earned income (wages, fees) whether or not the individual was covered by a company pension plan.
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How Does the IRA Work? First, some basic ground rules. Your IRA is a savings account containing funds that can be invested in any of a number of different financial instruments. (I’ll offer some guidelines on your options in a moment.) By law, you may contribute to your IRA up to 100 percent of the first $4,000 that you earn each
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