Question: What are the advantages to using your services versus a big firm like, Fidelity, Charles Schwab or Vanguard?
Answer: We will give you, one on one, personal assistance. We will help you design a portfolio that will fit you personally. We will monitor your portfolio and communicate with you regularly. You will work with a senior advisor and regardless of the size of your account will never be handed off to a junior advisor.
Question: Can an individual contribute to a traditional IRA if he or she has other retirement plans?
Answer: Yes, individuals can contribute to a traditional IRA whether or not they are covered by another retirement plan. However, they may not be able to deduct all of their contributions if they or their spouses are covered by an employer-sponsored retirement plan. [Note that contributions to a Roth IRA are not deductible and income limits apply.] See Publication 590 for further information.
Question: How can individual convert a traditional IRA to a Roth IRA?
Answer: A traditional IRA can be converted to a Roth IRA by:
Rollover - A distribution from a traditional IRA can be contributed to a Roth IRA within 60 days after distribution.
Trustee-to-trustee transfer - The financial institution holding the traditional IRA assets will provide directions on how to transfer those assets to a Roth IRA with another financial institution.
Same trustee transfer - As with the trustee-to-trustee transfer, the financial institution holding the traditional IRA assets will provide directions on how to transfer those assets to a Roth IRA. In this case, things should be simpler because the transfer occurs within the same financial institution.
A conversion results in taxation of any untaxed amounts in the traditional IRA. Also, the conversion is reported on Form 8606, Nondeductible IRAs.
Question: Can an IRA accept rollovers from a qualified retirement plans?
Answer: Provided the IRA document permits rollovers, almost any type of plan distribution can be rolled over into it.
Question: How much must be taken out of an individual’s IRA at age 70 1/2?
Answer: Required minimum distributions apply each year beginning with the year the account owner turns age 70 1/2. The required minimum distribution for each year is calculated by dividing the IRA account balance as of December 31 of the prior year by the applicable distribution period or life expectancy. An account owner can determine his or her applicable distribution period or life expectancy by using the Tables in Appendix C of Publication 590. Table I is used by beneficiaries. Table II is for use by owners who have spouses who are both the IRA's sole beneficiary and who are more than 10 years younger than the owner. Table III is for use by all other owners.
Question: Are there any restrictions on the things an IRA can be invested in?
Answer: The law does not permit IRA funds to be invested in collectibles.
If an IRA invests in collectibles, the amount invested is considered distributed in the year invested. The account owner may have to pay a 10% additional tax on early distributions.
Here are some examples of collectibles:
- Artwork,
- Rugs,
- Antiques,
- Metals - there are exceptions for certain kinds of bullion,
- Gems,
- Stamps,
- Coins - there are exceptions for certain coins minted by the U.S. Treasury,
- Alcoholic beverages, and
- Certain other tangible personal property.
Check Publication 590, Individual Retirement Arrangements (IRAs), for more information on collectibles.
Finally, IRA trustees are permitted to impose additional restrictions on investments. For example, because of administrative burdens, many IRA trustees do not permit IRA owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate but trustees are not required to offer real estate as an option.
Question: Can losses in an IRA be deducted on a participant’s income tax return?
Answer: No - Neither IRA losses nor IRA gains are taken into account on a participant’s tax return while the IRA is on-going.