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Retail

 

Money In: Not Tax Deductible

Example:

Ø If you earn 25k

Ø Contribute 5k

Ø Taxable Income 25k

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During: Not Tax Deferred

 

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Money Out: Taxed

 

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Bought XYZ stock for $100

Sold XYZ stock for $200

Capital gain (profit) $100

 

*Must report $100 capital gain on taxes

 

Bought XYZ stock for $100

Sold XYZ stock for $75

Capital loss $25

 

*Must report $25 capital loss on taxes

Traditional IRA

 

Money In: Tax Deductible

Example:

Ø If you earn 25k

Ø Contribute 5k

Ø Taxable Income 20k

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During: Tax Deferred

 

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Money Out: Taxed

 

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Withdrawal B4 age 59 ½

Ø Must pay taxes on withdrawal

Ø Plus 10% tax penalty

 

*Some exceptions may apply

Roth IRA

 

Money In: Not Tax Deductible

Example:

Ø If you earn 25k

Ø Contribute 5k

Ø Taxable Income 25k

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During: Tax Deferred

 

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Money Out: Tax Free

 

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Withdrawal B4 age 59 ½

Ø Must pay taxes on gains

Ø 10% tax penalty on principal

 

*After 5 years – principal amount can be withdrawn without paying taxes or penalty

 

Example:

Ø 1/1/10 contribution 5k

Ø Growth 2.5k

Ø 1/1/15 value 7.5k

 

*Can take out 5k, must leave growth or pay 10% penalty

 



 
 
 Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.

NOT FDIC-INSURED. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT GUARANTEED BY THE BANK. MAY GO DOWN IN VALUE.

This communication is strictly intended for individuals residing in the state(s) of MN. No offers may be made or accepted from any resident outside the specific states referenced.
 


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