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10 Cards in this Set
- Front
- Back
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Roth IRA Defined |
Contributions are made with after tax $'s. No RMD Can contribute after age 70 1/2 with earned income |
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Redemption W/H |
Do NOT ask for w/h on redemptions (even if premature) If pre-mature and not held for 5 years taxed and penalized on earnings of account. Only Basis (contributions made into account) is exempt from taxes and penalties |
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Exchange Options |
Have to exchange to same class unless Money Market A |
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Transfer/Rollover Options |
If TIK no CDSC. Original pprwk required if transferring out, if received IGO 2 bus day processing time. 60 day rollover starts from day after funds received by s/h |
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Tax Forms |
Redemption=1099 R (mailed by 1/31) Contribution=5498 (mailed by 5/31) No tax forms for exchanges |
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Contribution Limits and guidelines |
Under age 50 =Yearly contribution limit $5,500 Age 50 and over=Catch up yearly contribution limit $6,500 Full contribution is allowed if income is not above the lower limit. Contributions are not tax deductible but could receive tax credit Contribution is reduced if income is above lower limit but less than the upper limit, and is not allowed if income is above upper limit listed below. Single Filer: Phase out ranges: 2013: $112,000 to $127,000 2014: $114,000 to $129,000 2015: $116,000 to $131,000 Married Joint Filer: Phase out ranges: 2013: $178,000 to $188,000 2014: $181,000 to $191,000 2015: $183,000 to $193,000 |
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Is tax w/h required? |
No tax w/h unless s/h requests, not a requirement to ask. Publication 590 from IRS explains taxes on earned income. |
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New Account Forms Non-Princor |
Non-Princor * IRA Application- FV405 * IRA Transfer/Direct Rollover form- only used if transferring funds into principal from another custodian. MM3046 |
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New Account Forms Princor Reps |
(Same forms as Non-Princor) PLUS: Princor New Account Form- MM1542 Princor Customer Identity Form - MM2580 * Princor C Share Disclosure Form -Only needed if purchasing C Shares. -MM3641 * Princor Transfer Consent and Disclosure Form- Only needed if transferring funds into Principal to fund a mutual fund account. -MM2413 |
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Redemption Forms |
IRA Distribution Form- MM1303 72t - Used to establish systematic withdrawal under 59 1/2 under the 72t rule for premature exemptions. -FV434 |
