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IRA Contributions

Are you getting the most out of your IRA contributions? Our financial advisors will help you achieve an outstanding retirement portfolio.


An IRA is an individual retirement account. This is what many people use to prepare for their retirement. However, there are many parts of an IRA that people may not know about. People who want to learn more about IRA contributions should continue reading below.

Multiple IRAs Are Acceptable

Even though a person can pay into as many IRAs as they want, the total deposit for all IRAs cannot pass the annual maximum limit. In 2022, the annual maximum contribution is $7,500 for anyone over the age of 50 and $6,500 for anyone younger than 50. This means that a person younger than 50 cannot contribute more than $6,500 to their multiple IRAs within the same year.


The Kelley Financial Group has years of experience in guiding businesses and individuals through complex financial matters.

Cash Needs to Be Deposited to Regular IRAs

When someone makes a regular contribution to their IRA, it needs to be completed with cash. However, this is not the same for any accounts being rolled over. If someone has any further information, they should contact a team like The Kelley Financial Group to receive the correct advice on the matter.

RMDs are Not Needed from All IRAs

Traditional IRA owners now take a required minimum distribution (RMD) on April 1st of the year after the person turns 73 years old. This amount is decided upon their account balance on December 31st of the previous year and their life expectancy. After this, the specified RMD will need to be withdrawn every year. 


If the person has multiple IRAs, this does not mean they have to take this amount from all their IRAs annually. Instead, the person can merge the total RMD amounts of their IRAs and only take the entire amount out of one or multiple accounts. This gives people more control over how much money they wish to take out of each account.

There Are Different Rules for Non-Spousal and Spousal Beneficiaries

One of the many benefits of an IRA is that people can transfer their funds to their beneficiaries without needing to go through probate. Spouses can claim IRAs as their own, making it easier for them to deposit contributions into the IRA and control its distributions. 


However, a non-spousal beneficiary does not get the same treatment. They will not be allowed to add to the IRAs and must completely dissolve the account within ten years of the owner’s death. There are distribution options, but people should speak to a financial representative because they might change depending on the age at which the owner passes away.

Rollovers and Transfers Can Happen

More often, people move their accounts from one place to another. If the person wants to have the same IRA but wants to change the company, then they can move everything over, which is called a rollover. The person can take their distributions out for themselves, but they will need to deposit them into a new account within 60 days. 


When a transfer happens, the assets are delivered to the new financial institution, and this is not reported to the IRS. However, people should be aware of the different fees the institutions may have for completing this transfer for the client.

An IRA Can Be a Managed Account

A managed account allows the person to give their financial advisor permission to make investments without notifying the account holder. There is usually a flat fee for these kinds of accounts. If the broker has an agreement in place with the person, this type of account is allowed, and such actions can continue to be taken until the authorizer decides to stop it. 


People with large IRAs may find this option useful because it is a way to invest their money without the headache of doing it themselves.

There May Be Limitations to Investments

When speaking with a financial advisor, they will inform the client what investment limits are placed on IRAs due to the IRS. Also, some financial institutions have restrictions when it comes to additional assets. An example is that the IRA does allow some silver and gold coins, but many financial institutions do not. Additionally, there are companies that may not allow individual stocks to be held in someone’s IRA.

Age Does Not Matter

When someone has a paid salary, hourly wage, or tips from their work, they can deposit money into a traditional IRA. This means that minors with their first job can put money away for their retirement. 


There are many reasons to invest in an IRA early, but one of the biggest ones is the compounding interest. People will notice a change in their retirement savings due to the compounding interest that will help their money grow. Also, there are tax penalties for early distributions that will teach youth not to take their money out of their funds. 


However, some IRAs allow them to take out up to $10,000 for their first home or college without any penalties. Also, adults can continue to put money into their IRA at any age if they earn an income. This is a great way for people to create wealth that can be passed down through inheritance.


There are many ways that someone can utilize their IRA for their needs. However, people who want to make sure that they are making the right choices should speak to a member of The Kelley Financial Group. The representatives are always available to help people make the right choice for their retirement. Anyone who has a question should call (412) 528-1920.


This material was prepared for The Kelley Financial Group’s use. 


​The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax. 


A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

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