In this article we outline the most frequently encountered IRA accounts seniors may own. We share thoughts you may want to consider with your advisors as you decide how to best fund your Entry Fee in your CCRC or Life Plan Community.
While this page is not tax or financial advice, it is meant to give you a good baseline for a conversation with financial professionals who specialize in tax and retirement account management. A few hours of time with a tax or other licensed financial professional could save you a lot of money in unexpected tax consequences.
Please be sure to read the important disclaimer at the bottom of this page.
Overview of IRA accounts
If you are thinking of ways to finance a move to a Life Plan Community or CCRC, you may be considering accessing the funds you have accumulated in an IRA. Your IRA, or Individual Retirement Account, can take many forms, including a Traditional IRA, a Roth IRA, a SEP-IRA, a SIMPLE IRA, a Rollover IRA, a Spousal IRA, a Payroll Deduction IRA, a Self-Directed IRA, or a Nondeductible IRA. Different rules apply depending on the type of IRA you have. If one of the following descriptions apply to your IRA, follow the associated link for more information.
Do all IRA Accounts have the same rules?
Different rules apply depending on the type of IRA you have. If one of the following descriptions apply to your IRA, follow the associated link for more information.
Before making withdrawals, understand which IRA type you own.
Contributions are tax-deductible; earnings are tax-deferred until withdrawal; withdrawals taxed as ordinary income
Contributions are not tax-deductible; earnings and withdrawals are tax-free
Employer contributes to a Traditional IRA in the employee’s name
Employer and Employee contributions to an IRA
A tax-free distribution from one retirement plan to another retirement plan
Working spouse contributes to an IRA for a nonworking spouse
Employer set up IRA and employee authorizes payroll deductions
An IRA that can hold alternative investments
An IRA funded with after-tax dollars that is not a Roth IRA
The information in this page is not meant to serve as financial, tax, or personal financial planning advice. No decisions should be made from reading the information on this page. Decisions should be made after careful analysis and consultation with your financial, tax, accounting, or other professional advisor licensed to provide retirement advice.