Traditional IRA, Roth IRA and 401K

NON DEDUCTIBLE CONTRIBUTIONS

CONTRIBUTIONS TO A ROTH IRA HAVE THIS FEATURE

TAX DEDUCTIBLE CONTRIBUTIONS

CONTRIBUTIONS TO AN IRA, 401K and 403(B) HAVE THIS FEATURE

$7,000.00

MAXIMUM CONTRIBUTION YOU CAN MAKE TO AN IRA AT AGE 50 OR OLDER

$6,000.00

MAXIMUM CONTRIBUTION YOU CAN MAKE TO AN IRA BEFORE AGE 50

Hardship Withdrawals

Paying college expenses for you, your spouse, your children or grandchildren. Paying for the costs of a sudden disability. Paying for a first-time home purchase (up to $10,000). Paying medical expenses greater than 7.5% of your adjusted gross income if you're age 65 or older

50% Penalty

Penalty levied for not taking a RMD from your IRA. 50% OF WHAT SHOULD HAVE BEEN WITHDRAWN.

403b Plan

Retirement plan for specific employees of public schools and tax-exempt organizations, local, state and federal government employees.

Vesting or Vested

TERM USED TO DESCRIBE HOW MUCH OF YOUR 401K MONEY YOU CAN TAKE WHEN LEAVING YOUR COMPANY

10% Penalty

THE PENALTY APPLIED TO DISTRIBUTIONS FROM AN IRA, 401(K) AND 403(B) BEFORE AGE 59.5

1978

401K INCEPTION DATE

RMD (REQUIRED MINIMUM DISTRIBUTION AGE) FOR TRADITIONAL IRA AND 401K

AGE 72

Age 50

AGE FOR "CATCH UP" PROVISIONS IN AN IRA, ROTH AND 401K

Age 59.5

Age at which distributions can be taken without penalty or taxation.

IRA (Individual Retirement Account)

An investing tool used by individuals to earn and earmark funds for retirement savings.