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Insurance & Risk Management
12. Chapter 14: Annuities and Individual Retirement Accounts/Individual retirement accounts
12. Chapter 14: Annuities and Individual Retirement Accounts Illustration
Syllabus Slides

Individual retirement accounts

01.Core Concepts

Distributions from a traditional IRA before age 59½ are considered an early withdrawal and subject to a 10% tax penalty unless certain conditions apply, e.g., death or disability Distributions from traditional IRAs are treated as ordinary income Any non-deductible contributions are received income-tax free A formula is used to compute the taxable and non-taxable portions of each distribution ‹#›