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Individual Retirement Accounts (IRA)
Individual Retirement Accounts became available in 1975. The IRA is a trust or custodial account set up in the United States for the exclusive benefit of the individual (or the benefit of his/her beneficiaries). The main purpose of the IRA is to allow the individual to save money for later years. In an IRA, earnings are tax free or deferred (depending on the type of IRA) until the time of distribution. Annual IRA contributions may also be deducted on the individual's tax return.
Through Northeast Investment Management and Research Company, an assortment of IRA plans are offered to individuals seeking investments for the future. These IRA plans can either be invested in Northeast Investors Growth Fund or Trust.
You may download our IRA applications or fill out our Information E-mail Form and we will mail a printed copy to you.
| Traditional IRA |
Everyone who receives compensation or earned income and who is under the age of 70 can have a Traditional IRA. This includes participants in an employer-sponsored retirement, 401(k) or profit sharing plan, or Simple IRA plan maintained by the employer. Under current tax laws if you, or yourself and your spouse, are an active participant in such a plan and your income exceeds a certain level, all or part of your IRA contribution may not be tax deductible. |
| Roth IRA |
The Roth IRA is a nondeductible IRA with incentives for tax-free distributions. Earnings will be tax-free if held in the plan for 5 years and distributed for an IRS "qualified reason." A distribution of contribution amounts is always nontaxable and available at anytime.
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| Education Savings Account |
An Education Savings Account is a custodial savings account established by a parent or another individual for the purpose of saving and paying for the qualified education expenses of a designated child under the age of 18. Qualified distributions (including earnings from the account) may be distributed tax-free, when used to pay education expenses. |
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