Issue link: http://read.dmtmag.com/i/52434
Note. If you make your contribution for 2012 at the beginning of the year you have the entire year for your money to earn interest and grow that much more quickly. Q. How long can I wait to make my IRA contribution? A. You can make your contribution for tax year 2011 up to the date your tax return is due, which is April 16 this year since April 15 falls on a Sunday. Q. Who can contribute to an IRA? A. Anyone of any age can start and contribute to an IRA as long as they have earned income. Note. A juvenile can have their own IRA if they have income earned from, say, babysitting, a paper route, etc. Q. Is it possible to setup an IRA for my spouse who does not work? A. Yes, an IRA called a spousal IRA can be setup for a non- working spouse with the same contribution as those of the spouse with earned income. Q. Will I get a tax deduction for my IRA contribution? A. If you do not contribute to a retirement plan where you work, you can deduct your contribution to a traditional IRA on your tax return. If you contribute to your employer's plan you must meet certain income limitations before you can contribute and deduct contributions to your own traditional IRA. Contributions to a Roth IRA are not tax deductible. Winter 2012 — www.ncsf.com Note. Talk to your tax advisor about the differences between traditional and Roth IRAs and how your income and participation in your employers plan can limit your IRA contribution and deductions. Q. How long am I eligible to contribute to IRAs? A. You can contribute to a Roth IRA for as long as you like as long as you have earned income (wages, salaries, tips from a job, etc.) but contributions to a traditional IRA can only be made up to age 70½, the age at which you must begin taking mandatory minimum required distributions. Q. I have traditional and Roth IRAs. Can I contribute to both? A. You can make all of your contribution to one IRA or split it between the two, but no more than your maximum allowed contribution can be made for the year to all IRAs you own. Q. I contribute to a 401(k) plan where I work. Can I still contribute to an IRA? A. You may still be eligible to make contributions to an IRA and possibly deduct those contributions from your income if you do not exceed certain income limitations. You may also be able to make and deduct a partial contribution if your income is between a specifi c income range. Note. See your tax advisor to fi nd out if you are eligible. Products/features may not be available in all states. 1- Form 07S7YR; Form 07F7YR; 2- Form 03SPDA7; Form 03FPDA8 Q. I recently retired and have a retirement account at my former employer. Can I transfer my retirement funds to an NCSF IRA annuity? A. In most cases, yes. If your former employer allows it you can request a "rollover" of your 401(k) assets to an IRA. Q. Can NCSF act as a custodian for my IRA? A. Yes! NCSF has two fi xed rate annuity products that can be used for IRAs, a 7-year1 surrender annuity or a 10- year2 . Both have single or fl exible premium options. Talk to your NCSF insurance producer as to which would be best for you. Note. NCSF annuities offer competitive interest rates that are printed on page 26 of this issue. Q. Do I pay a fee to open and maintain an IRA with NCSF? A. NCSF does not assess annual IRA custodial fees. This time of year offers unique opportunities for setting aside funds for retirement, emergencies, college educations, future medical expenses and a myriad of other nest egg- draining situations. Non-qualifi ed annuities and IRA annuities may help you accumulate the funds you will need in retirement and other needs along the way. Still have a question or need help? Call your NCSF insurance producer or the Home Offi ce sales support staff to get started! 25