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SIE	Series 6	Series 63	Series 26	MLO

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Current Unit:

Unit 8 - Basic Economic Concepts	Unit 9 - Financial Reporting	Unit 10 - Analytical Methods
Unit 11 - Types of Investments	Unit 12 - Equities	Unit 13 - Debt Securities
Unit 14 - Investment Companies	Unit 15 - Insurance Products	Unit 16 - Calls, Puts, Derivatives
Unit 17 - Alt Investments & Assets	Unit 18 - Type of Client	Unit 19 - Client Profile
Unit 20 - Portfolio Management Styles, Strategies, Techniques	Unit 21 - Tax Considerations	Unit 22 - Trading Securities
Unit 23 - Performance Measures	Unit 24 - Retirement Plans

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IRA (BACK TO TABLE OF CONTENTS)

Can only contribute earned income, not passive income
- Earned income
  - Salary, wages, commission, and tips
  - Alimony is considered eligible income to invest into an IRA
Ineligible income(cant use to invest into an IRA)
- Passive income (collecting tenant rent payments) is not eligible, as it's not earned income like a job
- Dividends and capital gains are also not considered earned income
- Child support
- Lottery winnings is not considered earned income
Employee who is part of a pension plan
- Can invest into IRA but the contributions may or may not be deductible depending on his adjusted gross income
HARDSHIP WITHDRAWALS NOT ALLOWED IN IRAs, ONLY ALLOWED IN 401K
You may contribute to an IRA only until the first tax filing deadline (April 15) even if you filed an extension
April 15 deadline
- between January 1 and April 15, you may make contributions for the current year, the past year, or both
- you may contribute to this year's IRA from January 1 of this year until April 15 of next year
- if you file your tax on January 15, you may deduct your IRA contribution even if it is not made until April 15
- Catch-Up Contribution
  - Age 50 and older can contribute an additional amount each year into IRA/Qualified plan (Usually $1,000 extra)
    - Over 50; Normal $6k yearly max + $1,000 = $7,000
INHERITED IRA
- An inherited IRA will be subject to income taxes to the beneficiary at time of withdrawal or distribution
- When an IRA is inherited, other than a spouse, the only way to avoid a reportable distribution is a TRUSTEE TO TRUSTEE TRANSFER
- NONSPOUSE
  - Must Withdraw funds within 10 years
  - Cannot keep the money in the deceased's IRA
Trustee to trustee transfers do not incur any tax consequence
DEDUCTIONS & TAX ADVANTAGES
- Unlimited marital estate tax deduction between spouses who are U.S. citizens
- IRAs to charities offer the same estate tax benefit as any other asset

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