Retirement Flashcards
1
Q
Qualified Distributions from retirement plan
A
made after 59 1/2, permanently disabled, or dead
2
Q
Backdoor Roth IRA
A
person contributes to a traditional IRA (which has no income limits) and then converts it to a Roth IRA
3
Q
Max Retirement contributions
A
$6,500 ($7,500 is 50 or older)
Cannot contribute more than taxable income
4
Q
Required Minimum Distributions (RMD)
A
- 50% penalty on amount not withdrawn
- Not required for ROTH IRA while still active
- Age 72
5
Q
Qualified Charitable Contributions
A
- Distribution from IRA directly to qualified charity
- 70 ½ or older
- Max $100,000 per person
- Limited to ordinary taxable income
- Do not have to itemize
