Expanded IRA Rollover Rules
The Economic Growth and Tax Relief Reconciliation Act of 2001 included provisions that should simplify many investors’ retirement accounts, and possibly decrease the number of separate accounts needed.
Early Withdrawals from Your IRA
Although you may withdraw money from an IRA at any time, these funds are intended for retirement. To encourage you not to touch this money until you retire, the IRS imposes penalties for early withdrawals.
Fixed-Income Investment Selection
Fixed-income investments are designed to bridge the gap between after-tax income and your desired after-tax spending.
Life Expectancy Tables to Determine Required Minimum Distributions IRAs and Retirement Accounts
Once you reach 70½, you are required to withdraw from your IRA. How much do you withdraw? The IRS has simplified the calculation with Life Expectancy Tables to help you calculate your withdrawal.
Treasury Inflation-Protected Securities (TIPS)
TIPS are a type of security offered by the U.S. Treasury that provides protection against inflation. When you purchase a TIP, you will receive the interest payments semi-annually and you will at least receive your original principal amount at maturity, however unlike a regular Treasury bond, the interest and redemption amounts are tied to inflation rates.
Managing Your Liquidity
The risk of investing in bonds depends on the type of bond, the quality and the holding period.