Resource Type: Fact Sheets and Issue Papers
Roth IRAs
What is a Roth IRA and how does it work? A Roth IRA grows tax-free, and if an individual withdraws the money after age 59 ½ and the account has been in place for at least 5 years, the withdrawal will not be taxed. However, contributions to the Roth IRA are not tax-deductible. Who can […]
Traditional IRAs
What is a Traditional IRA and how does it work? The most common IRA, a Traditional Individual Retirement Account, allows an individual to get a tax deduction for money that is set aside for retirement. The money put into an IRA and the investment earnings on those contributions are not taxed until they are withdrawn. Who can set up a […]
Companies That Have Changed or Temporarily Suspended Their 401(k) Matching Contributions
Below is a list of employers that have announced plans to reduce or suspend matching contributions to their employees’ 401(k) and other defined contribution plan accounts since June 2008. For details on each company’s decision, click the employer’s name to see the company’s press release or news story announcing the change. Learn why the employer […]
Pension Rights After Divorce
A pension earned during marriage is generally considered to be a joint asset of both spouses. However, it is up to state divorce courts to decide whether and how pension assets are divided, and whether survivors benefits are payable. Except in the case of Social Security and Tier I Railroad Retirement benefits, a court order is necessary for someone who […]
Payroll Deduction IRAs
What is a Payroll Deduction IRA? A Payroll Deduction IRA is an arrangement that allows employees to contribute to an Individual Retirement Account through their employer. Any employer can choose to set up a Payroll Deduction IRA. How does a Payroll Deduction IRA work? If an employer sets up a Payroll Deduction IRA, it is […]
Inherited IRAs
What is an Inherited IRA? If you are named as a beneficiary of the IRA of someone who has died, the amount you inherit becomes an Inherited IRA. The rules that apply to Inherited IRAs differ depending on the type of IRA you inherit and whether you are the spouse of the deceased IRA owner. […]
Nondeductible IRAs
What is a Nondeductible IRA? A Nondeductible IRA is like a Traditional IRA in all respects but one: An individual cannot take a tax deduction for contributions made to the IRA. Who can set up a Nondeductible IRA? An individual can set up a Nondeductible IRA if that person is covered by a pension, 401(k) […]
International Differences in Poverty Rates
The data in the Country Comparisons chart comes from Table 1 of a study done for the Organization for Economic Co-operation and Development (OECD) called the Luxembourg Study. The study was done by Professor Timothy Smeeding in 2005 to compare poverty rates among older persons. The LIS team compiled micro-data from different surveys in order […]
Rollover IRAs
What is a Rollover IRA? In a retirement plan that permits an individual to withdraw money when changing jobs or retiring, that person can postpone paying income taxes on the amount distributed if the money is transferred into a Rollover IRA (or into another retirement plan). An individual can also transfer money from one IRA […]
Pension Inequities Targeting Women
Private Retirement Plans Inequity: A wife will lose her right to a share of the money in her husband’s 401(k) plan if her husband leaves the job that sponsors the plan and cashes out the account or rolls it over into an IRA. The wife’s consent is not required. With 401(k) money increasingly becoming the […]
A New Type of Savings Plan: The Roth 401(k)
What is the Roth 401(k)? In 2001 Congress passed the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) which in part created a new form of retirement savings plan called a Roth 401(k). The Roth 401(k) is a new type of savings plan combining a traditional 401(k) with a Roth IRA. Employers were […]
