Traditional IRAs: The Rules Revisited

It has been almost a quarter century since the popular version of the Individual Retirement Account (IRA) was born. The Economic Recovery Tax Act of 1981 opened up eligibility of IRAs to anyone under age 70½ with earned income.

Since then, the concept of the tax-advantaged retirement account has become wildly popular, and a whole new generation of IRAs has been spawned.

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Now, for example, there is the Roth IRA, the Education IRA, and the non-deductible IRA. The grandfather of them all is now referred to as the traditional IRA, to distinguish it from the offspring.

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September 2005 Issue

Stock Screens
The Revised Foolish 8 Screen: Not-So-Foolish Results
Small stocks entice investors with the potential for large returns. But how do you select among the thousands of firms? The Motley Fool Web site originally developed a filter to look for profitable, rapidly growing small companies with strong price momentum. A revised version adds valuation and management criteria.

Stock Strategies
When to Sell Stocks to Cut Your Losses
Success in the stock market is as much about limiting losses as it is about riding winning stocks. How can you cut your losses? By following a rule-based selling strategy. How to sell when a stock doesn't pan out.

Top Web Sites
AAII's Guide to the Top Investment Web Sites, 9th Edition, 2005
Our picks for the top investment Web sites focus on those that provide investment information or services that are useful, substantial and available for free or at a reasonable price.

Investment Newsletters
Lessons of the Last Quarter Century: Tie Yourself to Your Strategy
A look at the performance of investment newsletters over the last 25 years indicates that there is a wide diversity of approaches among the top performers. What do they have in common? They stick to their style.

Departments
Briefly Noted
Current news items of interest to individual investors.

Departments
Letters to the Editor
Member questions and comments on recent AAII Journal articles.

Tax Strategies
Traditional IRAs: The Rules Revisited
Traditional IRAs have been around since the early 1980s, and have proven so popular they have spawned a whole new generation of IRAs. But traditional IRAs themselves have evolved, as Congress has fiddled with the rules. A review of the basic rules for traditional IRAs.

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September 2005 Issue