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IRA TERMS

Horizontales
Not paying tax now, paying later
Modified Adjusted Gross Income
Funds being directly transferred to an IRA from an employer plan without the Member having any access to the funds
Funds being deposited into an IRA account for either the current or the prior tax year
exempt from tax
Earned income is defined by the IRS as: wages, tips, salary, commission, net business income and alimony
Verticales
able to be deducted from taxable income when calculating income tax due
Required Minimum Distribution; the amount of money that a Traditional IRA holder over age 70½ is required to withdraw from his/her IRA each year
Individual Retirement Account
Funds being withdrawn from an IRA
Funds being deposited into an IRA where the IRA holder has had physical access to the funds and is re-depositing the money within 60 days