IRAs - Traditional
The most frequently asked tax questions related to IRAs - Traditional
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Answer Tax QuestionsSep and Simple IRAs
Asked Monday, November 14, 2011 by an anonymous user
Employers can contribute up to a quarter of the salaries that each employee earns (25%)up to an annual maximum limit. For 2017, that maximum will be $54,000, up $1,000 from its 2016 level. That's the first rise in the SEP IRA limit since 2015,
For self-employed. the 25% refers to the self-employed worker's "net earnings" from the business. The net result of the math is that the 25% limitation on "net earnings" works out to 20% of your adjusted profit after the self-employment tax adjustment
For self-employed. the 25% refers to the self-employed worker's "net earnings" from the business. The net result of the math is that the 25% limitation on "net earnings" works out to 20% of your adjusted profit after the self-employment tax adjustment
IRA - Active Participant
Asked Monday, November 14, 2011 by an anonymous user
Generally, Box 13 on your W-2 form will be checked. Being covered by a covered employer plan is used in the IRA deduction phase-out rules.
IRA contribution - multiple businesses with profits and losses
Asked Monday, November 14, 2011 by an anonymous user
If you have multiple self-employment activities, you must aggregate profits and losses from all the activities to determine if you have "Net Income" on which the IRA contribution would be calculated upon. If the net result is negative, No contribution is allowed.
IRA - Combat pay
Asked Monday, November 14, 2011 by an anonymous user
Members of the armed forces serving in a combat zone which is considered tax free can contribute to Traditional and Roth IRA plans.
SIMPLE IRA - Set up Due date
Asked Wednesday, January 17, 2001 by an anonymous user
SIMPLE IRA plans must be set up by 10/1/xx for that year's contributions to be deductible on that year's tax return.
IRA - Set up fees
Asked Wednesday, January 03, 2001 by an anonymous user
The costs to set up or administer an IRA are deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A. The fees must be billed and paid separately from your regular IRA contribution.
IRA - Rollover Period
Asked Thursday, December 21, 2000 by an anonymous user
You must complete the rollover by the 60th day following the day on which you receive the distribution. This 60 day period is extended for the period during which the distribution is in a frozen deposit in a financial institution. A written explanation of rollover must be given to you by the issuer making the distribution.
IRA - Paying college education
Asked Wednesday, December 13, 2000 by an anonymous user
Withdrawals from a regular IRA that are used for higher educational expenses at a post-secondary school are not subject to the 10% penalty on early withdrawals that is reported on IRS Form 5329. Qualified expenses include tuition, books, fees, supplies and room and board if student is at least a half-time student.
IRA - Distributions, Capital gains or Ordinary Income
Asked Tuesday, October 24, 2000 by an anonymous user
On traditional IRAs, the gains realized over the years in the form of capital gains, dividends, interest are deferred and not taxable until you take IRA distributions. When you do take the IRA distribution, the amount is considered ordinary income and taxed as such and not taxed as capital gains.
