Tax Topic 26 - Contributions for IRAS and Pension Plans

In this tax topic you will learn about individual retirement arrangements (IRAs). You will learn the advantages of setting up an IRA. An IRA is a personal savings plan that provides you with tax advantages for setting aside money for when you retire. These advantages are contributions being partially or fully deductible and amounts that you put in IRAs are not taxed until distributed and there it is possible that these amounts will not be taxed at all if distributed according to the rules. Here, you will learn rules to follow in setting up an IRA, contributing to an IRA, transferring money or property to and from an IRA, handling an inherited IRA, receiving distributions from an IRA, and taking a credit for contributing to an IRA. In addition, you will also become aware of penalties and additional taxes that apply if rules are not followed. 

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