Qualified and Traditional IRA

Question 1

At what age does the early withdrawal penalty no longer apply for a Traditional IRA?

Answer 1

59.5

Question 2

A shareholder, who is not yet 59 ½, takes a distribution from their IRA. Since they use this
to visit the Grand Canyon on vacation, they may incur an early withdrawal penalty of _____.

Answer 2

10 percent

Question 3

At what age can a shareholder begin to make catch-up contributions to a Traditional IRA?

Answer 3

50

Question 4

Another name for the optional federal tax we withhold from IRA distributions is _____?

Answer 4

TEFRA

Question 5

A shareholder can take a distribution from a traditional IRA and then roll it over tax and
penalty free within _______. This is allowed ________ in a 12-month period per SSN.

Answer 5

60 days/once

Question 6

Can someone with annual earnings of $4500 contribute to a traditional IRA?

Answer 6

Yes, they can invest 100% of their earned income or up to maximum annual contribution
whichever is less.

Question 7

How long can SHs contribute to a traditional IRA?

Answer 7

As long as they earn income.