MGMT 1A Chapter Notes - Chapter 12: Pension
Document Summary
Named after the senator that created this retirement account: traditional. Lesser of (current year 2016 amount) or your earned income. If 50 years old or above: cannot contribute to roth ira if income is above: Can contribute to traditional then roll it over to roth: co(cid:374)tri(cid:271)utio(cid:374)s are . You have high income of ,000 or above if you are single. You have high income of ,000 or above if you are married file jointly. You are a pension plan participant (401(k) or 403(b)) Fully taxed for roth ira: gro(cid:449)th is . Tax-free for roth ira: withdra(cid:449)l is . 2 types: 401(k) for-profit companies, 403(b) Maximum contribution (annual: lesser of (current year 2016 amount) or 100% of your paycheck. If you are below 50 years old: lesser of ,000 or % of your paycheck. Contributions come out of your paycheck pre-taxed i. e. if your paycheck = ,000 and you put ,000 into your 401(k), only.
