FAQ
IRA
How much can be contributed to a Traditional IRA?
Contributions to an IRA generally must not exceed the current annual contribution limit. The contribution limits for 2010 are the lesser of:
- $5,000 ($6,000 if you are age 50 or older) -or-
- Your taxable compensation for the year
Note: If you have more than one IRA, the limit applies to the total contributions made on your behalf to all of your Traditional and Roth IRAs combined.
How much can be contributed to a Roth IRA?
Contributions to an IRA generally must not exceed the current annual contribution limit. The contribution limits for 2010 are the lesser of:
- $5,000 ($6,000 if you are age 50 or older) -or-
- Your taxable compensation for the year
Note: If you have more than one IRA, the limit applies to the total contributions made on your behalf to all of your Traditional and Roth IRAs combined.
When can contributions be made to an IRA?
Contributions can be made to your IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2009 must be made by April 15, 2010, and contributions for 2010 must be made by April 15, 2011.
Note: Contributions cannot be made to your traditional IRA for the year in which you reach age 70 1/2 or for any later year.
Are Traditional IRA contributions tax deductible?
The general limit is as follows for a Traditional IRA:
- If you (and your spouse) do not participate in an employer sponsored retirement plan, your contributions to a Traditional IRA may be fully tax deductible, regardless of the amount of your adjusted gross income.
- If you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Your adjusted gross income (AGI) level will determine how much of your contribution is tax deductible.
| IF your filing status is... | AND your modified adjusted gross income is... | THEN you may take... |
| single or head of household | $56,000 or less | a full deduction. |
| more than $56,000 but less than $66,000 | a partial deduction. | |
| $65,000 or more | no deduction. | |
| married filing jointly or qualifying widow(er) |
$89,000 or less | a full deduction. |
| more than $89,000 but less than $109,000 | a partial deduction. | |
| $109,000 or more | no deduction. | |
| married filing separately | less than $10,000 | a partial deduction. |
| $10,000 or more | no deduction. |
Are Roth IRA contributions tax deductible?
Contributions to a Roth IRA are not tax deductible.
I am retired; do I have to wait 5 years before getting funds from my IRA in AGLF?
No. Our current policy is to allow individuals who are over the age of 59.5 to have access to their IRA investments at any time. Depending on the type of IRA and your current tax situation, you may owe taxes on a distribution from an IRA. A qualified tax professional would be able to help you determine any personal tax impact.
Does my spouse need to sign the spousal consent?
Only if you are naming someone other than your spouse as a primary beneficiary.
What’s the difference between a transfer and a rollover?
A transfer is when you move an IRA to an IRA. A rollover is when you move money from a Qualified Retirement Plan, like a 401(k), to an IRA.
What’s the difference between a fixed and adjustable rate?
The fixed rate is a fixed interest rate for 5 years. It will not go up or down. The adjustable rate is subject to change monthly.
What is the difference between a Traditional IRA and a Roth IRA?
A traditional IRA is a retirement account where your contributions can be deducted from your current taxes and you will be taxed on any distributions. A Roth IRA is a retirement account where the contributions are considered already taxed therefore any distributions will be tax free. If you are unsure which one would be best for you, consult a tax advisor.
How often are statements sent?
Statements are mailed quarterly for all accounts except for IRAs. IRA statements are mailed annually in January.
Can I rollover my 401(k), 403(b), IRA or other types of retirement accounts?
Yes. We provide the required documentation and assistance throughout the rollover process.
Are there any management or maintenance fees?
No. There are no management fees, maintenance fees or sales charges. A $50 termination fee is assessed when IRAs are depleted or transferred out of AG Loan Fund to other carriers.
Is any of my money in the stock market?
No, IRAs are invested 100% in AG Loan Fund.
Can I set up automatic distributions?
If the investor has attained the age of 59.5, any amount can be paid monthly, quarterly, semi-annually or annually.
When do I have to begin taking a Required Minimum Distribution?
The first Required Minimum Distribution (RMD) must be taken by April 1st in the year following the year in which the investor turned 70.5.
This information is general in nature and does not constitute legal or tax advice. You should consult an attorney or tax advisor for individual advice regarding your own situation. Information is from sources deemed reliable. Information is subject to error, omission, withdrawal, or change.