So you think you know everything about your IRA? Well, get ready for a pop quiz. Whether you already have an IRA, or you’re thinking about opening one, there are several things you should know. And what better way to measure the depth of your knowledge with a little test.

• First a little inspiration from Proverbs 18:15 – “An intelligent heart acquires knowledge, and the ear of the wise seeks knowledge” so let’s SEEK SOME KNOWLEDGE about IRAs!
• Here’s our little quiz… just to make it easy, these will all be true or false questions.
• 1 – You can’t open an Individual retirement account if you already have a qualified retirement plan with your employer. True or false?
• FALSE – An IRA can be a great way to supplement your retirement savings, even if you have a 401k or 403b with your employer. In 2023, you can contribute up to $6,500 to a traditional or Roth IRA, or $7,500 if you’re 50 or older. You can even have a traditional and a Roth IRA, but the combined contributions must not exceed those limits.
• 2- You can invest in anything in an IRA. True or false?
• FALSE – Your IRA isn’t an investment in itself; it’s more like a bucket that holds your investments, which are managed by the account’s custodian. That custodian will offer you a WIDE VARIETY of investing options, like bonds, money market funds, stocks, and mutual funds.
• But THERE ARE LIMITS. You can’t invest in things like whole life insurance policies, antiques, or physical precious metals. That last one requires a different thing – a self-directed IRA, which is a topic for another time.
• 3 – If you should die, your IRA must go through probate and be distributed to your heirs according to your will. True or false?
• FALSE – Like many financial accounts, your IRA allows you to name one or more beneficiaries to receive those funds in the event of your untimely death. The beneficiary designation supersedes anything specified in a will and prevents the IRA from going through the sometimes lengthy probate process.
• You do, however, have to keep the beneficiary designation up to date if you go through a major life change, like the death of a spouse. The custodian can’t read your mind, so making your intentions known with a new beneficiary designation is vital.
• 4 – At some point, you have to take money out of your IRA. True or False?
• TRUE – Traditional IRAs come with Required Minimum Distributions or RMDs. When you retire, you may not need the income generated by your IRA, and you’d be perfectly content to just let those assets accumulate but Uncle Sam sees it differently, wanting his cut and only willing to wait so long.  You’ll have to start taking money out of your traditional IRA by April 1st of the year after the year you turn 73 and a half. In 2033, the age for RMDs will be extended to 75.
• If you’re worried that you’ll need a calculator and calendar to figure all that out, don’t worry. IRA custodians are required to send you an RMD notice by January 31 each year.
• PAY ATTENTION TO THOSE NOTICES because if you fail to take an RMD on time, the penalty is a whopping 25% of every dollar you failed to withdraw. Here’s where a Roth IRA is a better alternative, since it’s funded with after-tax dollars and has NO REQUIRED MINIMUM DISTRIBUTIONS.
• 5 – You can’t borrow from your traditional IRA. True or False?
• TRUE – While you may be allowed to borrow from a 401k or 403b, (not advisable, by the way) you can’t borrow from an IRA even for a good cause like buying a house or sending your kid to college. If you withdraw funds from your traditional IRA, the money will be added to your adjusted gross income and taxed at your income tax rate … and it’s possible that the withdrawal could push some of your income into an even higher tax rate. So you don’t want to do that.
• Those are some of the things you may not have known about an IRA. We hope you did well on our pop quiz.

Next, Rob answers these questions at 800-525-7000 or via email at askrob@FaithFi.com (mailto:askrob@faithfi.com?subject=Faith%20and%20Finance%20Listener%20Question&%20Finance%20Listener%20Question) :

• If you have some cash that you’ve been holding onto, is it idea to put it into a Money Market right now?
• If you’re 63 and retired and your husband is 12 years old and not in good health, will taking your benefits first affect the survivor’s benefits from his Social Security later?
• If you and your husband have very few deductions which left you, this year with a much higher tax payment, instead of raising your W4 withholding, would it be better to put more into contributing to an IRA?
• If you’re considering turning your garage into a AirBnb room for rent, how should you finance this?

Be sure to check out the rest of FaithFi.com (  to access our books and our many free helpful resources. You can also find us on Facebook Faith and Finance (Live) (  a……(read more)

LEARN MORE ABOUT: IRA Accounts

INVESTING IN A GOLD IRA: Gold IRA Account

INVESTING IN A SILVER IRA: Silver IRA Account

REVEALED: Best Gold Backed IRA

An individual retirement account (IRA) is a popular investment tool for saving for retirement. It offers a number of tax advantages and investment options that can help you build a solid financial future. However, there are some lesser-known aspects of an IRA that you may not be aware of. Here are some things you may not know about an IRA.

1. There are different types of IRAs
Many people are familiar with traditional IRAs, but there are actually several different types of IRAs to choose from. In addition to traditional IRAs, there are Roth IRAs and SEP IRAs, each with its own unique set of rules and benefits. It’s important to understand the differences between these types of IRAs and choose the one that best suits your individual financial situation and retirement goals.

2. You can contribute to an IRA even if you have a retirement plan at work
Some people mistakenly believe that if they have a 401(k) or another type of retirement plan through their employer, they cannot contribute to an IRA. In fact, you can contribute to an IRA in addition to your employer-sponsored retirement plan, as long as you meet the income requirements. This can be a great way to boost your retirement savings and take advantage of the tax advantages offered by an IRA.

3. You can use an IRA to help with a first-time home purchase
Many people are unaware that they can use funds from an IRA to help with the purchase of their first home. With a traditional IRA, you can withdraw up to $10,000 penalty-free for a first-time home purchase, and with a Roth IRA, you can withdraw contributions (but not earnings) penalty-free for a first-time home purchase. This can be a helpful option for those who are looking to buy a home and want to take advantage of their IRA savings.

4. There are income limits for contributing to a Roth IRA
While anyone can contribute to a traditional IRA, there are income limits for contributing to a Roth IRA. For 2021, the income limit for contributing to a Roth IRA is $140,000 for single filers and $208,000 for married couples filing jointly. If your income exceeds these limits, you may not be able to contribute to a Roth IRA, but you can still contribute to a traditional IRA.

5. You must start taking required minimum distributions (RMDs) from a traditional IRA at a certain age
Once you reach the age of 72, you are required to start taking minimum distributions from a traditional IRA. These RMDs are calculated based on your life expectancy and the balance of your IRA, and they are subject to income tax. It’s important to be aware of this requirement and plan accordingly to avoid any penalties for failing to take RMDs.

In conclusion, an IRA is a valuable tool for saving for retirement, but there are a number of lesser-known aspects of IRAs that are important to understand. By familiarizing yourself with the different types of IRAs, the rules for contributing to an IRA, and the requirements for taking distributions, you can make the most of this valuable investment opportunity and secure your financial future.