Is Ira A Qualified Retirement Plan?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    Yes, IRA's are considered qualified retirement plans.  Basically, qualified simply means that the government has established certain laws governing their tax favored status and rules about how those funds must be withdrawn.  IRA's are sold both through banks and insurance companies.  Insurance companies use an annuity to be the vehicle through which the IRA is funded.  A traditional IRA allows you to deduct your contributions from your taxes up to the limits specified by the Government.  A Roth IRA allows you to pay the taxes in the accumulation phase but are tax favored when you begin taking withdrawals.  See your tax advisor for details on how an IRA will work for you, then when you are ready, a good retirement planner can help you set things up in the best way for you.
    Answered on June 12, 2013
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    David RacichPRO
    Fountain Hills, Arizona
    An IRA (individual retirement arrangements) is a qualified plan under ERISA. IRAs are tax deductible, accumulate tax deferred and distribute taxable income at ordinary income tax rates. Distributions before age 59 ½ could trigger a 10% penalty in addition to the ordinary income taxes. Traditional investments like mutual funds and annuities can be placed inside an IRA. Life insurance in an IRA is prohibited.
      
    Answered on June 12, 2013
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