Individual Retirement Account

Examples of Individual Retirement Account in the following topics:

• Commercial Banks

  • Businesses and individuals use banks for different purposes.
  • Individual retirement account (IRA): savings deposits that offer a way to save for retirement.
  • Banks sometimes charge a fee for checking accounts, because check processing is costly; however, many banks offer no-fee checking and checking accounts that earn interest if a minimum balance is maintained in the account.
  • Yet there can also be real differences between one bank's accounts and another's, so businesses and individuals are wise to shop around.
  • Commercial banks provide a variety of products to individuals and businesses.

• Retirements

  • When a person retires, they stop working completely or semi-retire by reducing their hours.
  • These days, many baby boomers are semi-retired.
  • A person may also semi-retire by reducing work hours.
  • When retiring prior to age 59½, there is a 10 percent IRS penalty on withdrawals from a retirement plan like a 401(k) plan or a Traditional Individual Retirement Account (IRA).
  • It allows the distribution of a IRA account prior to age 59½ in equal amounts of a period of either 5 years or until the age of 59½, which ever is the longest time period without a 10 percent penalty.

• Pensions and Unemployment Insurance

  • In the United States, employers play a key role in helping workers save for retirement.
  • The amount of money available to employees upon retirement, then, depends on how much has been contributed and how successfully the employees invest their own the funds.
  • But the most important pension system run by the government is the Social Security program, which provides full benefits to working people who retire and apply for benefits at age 65 or older, or reduced benefits to those retiring and applying for benefits between the ages of 62 and 65.
  • Moreover, with the post-war baby-boom generation due to retire early in the 21st century, politicians grew concerned in the 1990s that the government would not be able to pay all of its Social Security obligations without either reducing benefits or raising payroll taxes.
  • Many people -- generally those who are self-employed, those whose employers do not provide a pension, and those who believe their pension plans inadequate -- also can save part of their income in special tax-favored accounts known as Individual Retirement Accounts (IRAs) and Keogh plans.

• Personal Financial Management

  • Personal finance is the application of the principles of finance to the monetary decisions of an individual or family.
  • Personal finance is the application of the principles of finance to the monetary decisions of an individual or family.
  • It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
  • One might also consider individual or employer sponsored retirement plans, social security benefits, and income tax management.
  • Try to save money for long-term goals, such as your retirement.

• Civil Rights of the Elderly

  • The elderly, sometimes referred to as senior citizens in the United States, are a demographic group usually defined by being retired or over the retirement age (which is dependent on life expectancy changes).
  • This law forbids employment discrimination against anyone who is at least 40 years old in the United States; the denial of benefits based on age; mandatory retirement; and prohibits statements of age preferences in job notices or advertisements.
  • The law attempts to address company policies that force elderly employees out of work once they become eligible for government retirement benefits or due to prejudice against the elderly.
  • A large component of non-monetary compensation is retirement funding and similar benefits.
  • Employers will often offer matching or retirement accounts for employees.

• Redeeming at Maturity

  • If current assets will be used to retire the bonds, a Bonds Payable account should be listed in the current liability section.
  • A separate account should be maintained for each bond issue.
  • On the balance sheet, the Bonds Payable account can be shown as different issues or consolidated into a single balance.
  • Keep in mind the carrying value - cash paid to retire bonds = gain or loss on bond retirement
  • Explain how to record the retirement of a bond at maturity

• Shortcomings of the Measurement

  • The rate is a percentage that is calculated by dividing the number of unemployed individuals by the number of individuals currently employed in the labor force .
  • For example, the unemployment rate does not take into account individuals who are not actively seeking employment, such as individuals attending college or even individuals who are in U.S. prisons.
  • Individuals who are self-employed, those who were forced to take early retirement, those with disability pensions who would like to work, and those who work part-time and seek full-time employment are not factored in to the unemployment rate.
  • Some individuals also choose not to enter the labor force and these statistics are also not considered.
  • The unemployment rate is the percentage of unemployment calculated by dividing the number of unemployed individuals by the number of individuals currently employed in the labor force.

• Personal Experiences of Individuals With Degrees in Sociology

• Overview of Pension Accounting

  • A pension is a contract for a fixed sum to be paid regularly to a person, typically following retirement from service.
  • A pension is a contract for a fixed sum to be paid regularly to a person, typically following retirement from service.
  • With a defined benefit plan, an employee knows the terms of the benefit to be received upon retirement.
  • The second complication comes from the application of accrual accounting.
  • This smoothing out of the account disguises the true position of the plan.

• Aging and Wealth

  • Major policy efforts include Social Security, a social welfare program that taxes the current working sector to give money to individuals in retirement, and Medicare, a federal program that subsidizes medical costs for seniors.
  • Social Security is designed to redistribute wealth temporarily in order to help seniors finance their lives after retirement.
  • The workforce that is currently contributing to the fund will then retrieve payments once they retire.
  • Thus, Social Security has features of both a redistribution system and a savings account.
  • Further complicating things, the typical senior household has only $66,900 in savings, yet the average American male needs $124,000 to cover healthcare during retirement, and the average American female needs $152,000.