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401(k) OPTIMIZER

FUTURE LEGACY

21631 Stevens Creek Blvd.#C,
Cupertino, CA 95014
(See Map)

Tel:
(408) 446-3337

Fax:
(408) 446-1333

E-mail:
marika@futurelegacy.com
Circle of Financial Health >> Protect >> IRA

IRA (Individual Retirement Account)

An IRA is a personal saving plan that offers tax advantages to encourage you to set aside money for your retirement.

There are two major advantages to an IRA:
1) You may be able to deduct all or part of your contributions from your taxable income;
2) Amounts in your IRA, including earnings and gains, are not taxed until distributed to you.

IRAs are not investments by themselves – they are sets of rules that you agree to follow when you set up an account and later you will be taxed accordingly. Your money is still invested in saving accounts, CDs, stocks, bonds, mutual funds, etc, and performs just like all other investments on the open market.

We can set up any type of IRA account for you, including the following:

ISSUES TO CONSIDER:
IRA beneficiary document overrides Trusts and Wills
Early withdrawal penalties
Custodian / Trustee problems
Consequences of ill-preparation or inaction

Our IRA distribution strategy is based on ED SLOTT'S advanced retirement planning techniques. (See under Current Issues)

TRADITIONAL IRA: (See IRS Publication 590 for details)
Contributions are deductible from income up to a certain limit per year, Withdrawal can begin at the age of 59 ½
Withdrawal must begin by the age of 70 ½ (RMD – Required Minimum Distribution)
Penalties apply for early or late withdrawals
All amounts invested, including gains and earnings grow on tax deferred basis
Withdrawals are taxed on your regular income tax rate at the time of withdrawal.




ROTH IRA: (See IRS Publication 590 for details)
Contributions are not deductible from income. Limits apply.
Withdrawal can begin at the age of 59 ½
No RMD (Required Minimum Distribution) at age 70 1/2
Penalties apply for early withdrawals
All amounts invested, including gains and earnings grow on tax deferred basis
Withdrawals are tax free after conditions are met.


STRETCH IRA:
Stretch IRA is not a product – it is a process that allows an existing IRA account to be passed down to heirs while maintaining most of its tax advantaged features.
There are complicated rules to follow and each Trustee or Custodian have their own guidelines you have to follow.
Many custodians won't allow IRAs to be stretched. In such case you have an option to roll it over to another IRA with another institution that allows stretch. It is simple and inexpensive if you act in time, but it can become a complicated and expensive process for your heirs after you die.
Marika prides herself to be at the cutting edge on IRA issues and frequently holds training classes to Attorneys on this subject.


SEP IRA: (Simplified Employee Pension Plan)
A SEP is a plan that allows an employer to provide a retirement plan for employees by making contribution to each eligible employee's IRA. It can be a one-man company (you), in which you are both the employer and the employee, thus, expanding your yearly IRA contribution limits. We welcome your questions and offer to discuss your case during our complimentary one-hour consultation.
(See more under 'Companies' tab)


SPOUSAL IRA:
Spousal IRA is not a product – it is a regular IRA account that has been inherited by a spouse.
There are rules to follow, choices to make, and time limits to meet by the spouse regarding when and how the amounts in the IRA will be distributed.


SIMPLE IRA:(Savings Incentive Match Plan for Employees)
SIMPLE is an employee salary deferral plan that requires a limited employer contribution. If you are a member in an existing SIMPLE plan, we welcome your questions and offer to discuss your case during our complimentary one-hour consultation. (See more under 'Companies' tab).




EDUCATIONAL IRA: (See IRS Publication 970 for details)
ESA – Education Saving Account is not really an IRA since it is used for educational purpose rather than for retirement.
Contributions are not tax deductible, limits apply.
Earnings and distributions are tax free as long as they are used for qualified educational expenses,
Unused amounts are distributed at age 30 and earnings are taxed. Penalty may apply.
Possible roll-over to another ESA for another family member.


SELF-DIRECTED IRA …
… is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee or custodian hold the IRA assets
It is possible to invest in most IRS permitted investment types including, but not limited to, real estate, foreign real estate, stocks, mortgages, franchises, partnerships, private equity and tax liens.