We have provided these FAQs as general guidance. IRAs of all types are subject to IRS eligibility, requirements and restrictions. Talk with your investment and tax advisors about your particular circumstances. Please see IRS Guidelines for information for the current tax year.
For traditional IRA, there are no income limits, however there are income limits for tax deductible contributions.
For 2021 & 2022: $6,000 ($7,000 if age 50 or older). Please see IRS Guidelines for current information.
Once you reach age 50, contribution limits on IRAs increase by another $1,000 making it $7,000. It is called “catch-up contribution” for those nearing their retirement. Please see IRS Guidelines for current information.
Yes. You may do so if you are eligible to contribute to both types. However, the sum of all of your IRA contributions combined may not exceed the contribution limit for that tax year. So with a $6,000 limit, if you contribute $2,000 to a deductible IRA that year, you may contribute up to $4,000 to a Roth IRA for that same year.
As of 1/1/2020, the age limit for contributions to a Traditional IRA has been removed under The SECURE Act of 2019. Before, one could contribute to a Traditional IRA only until the age of 70 ½. Now, anyone of any age who has earned income can contribute. Please see IRS Guidelines for current information.
Under certain conditions, yes. The rules vary depending on the type of IRA you have. Per the SECURE Act of 2019, as of January 1, 2020, upon birth or adoption of a child, an IRA owner may withdraw up to $5,000 penalty-free from any type of defined contribution plan or a Traditional IRA. Such distributions may also be repaid.
An excess IRA contribution occurs if you:
Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA. The tax can’t be more than 6% of the combined value of all your IRAs as of the end of the tax year.
To avoid the 6% tax on excess contributions, you must withdraw:the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and any income earned on the excess contribution.
Yes. This switching is called “IRA rollover.” However, keep in mind rollover rules will apply. Plus: if your contributions to traditional IRA were pre-tax, you will have to report that as income on your income tax returns and pay the tax accordingly. A rollover is not considered a distribution, so federal or state tax penalty won’t apply. There are no income or filing restrictions on rollovers.
It depends on your specific financial situation and your goals, as well as your income, contributions and age related information that may affect your choice.
You can, but it is important to select the right IRA for your needs. Traditional and Roth IRAs have different tax benefits and rules. Those same rules will apply to the amount you roll over from your old 401(k). For example, if 401(k) was funded with pre-tax contributions and you choose to rollover to a Roth IRA, you would have to pay income taxes on the rollover amount. If it is rolled over to a Traditional IRA, you won’t owe taxes at the time of rollover. Before making a decision, we suggest that you consult with a tax advisor about your specific situation.
You may open up an account with a certified Asset Management Company (AMC). There are many you can choose from. Many offer easy and free online access to a wealth of resources and tools. If you choose to invest your IRA contributions into a mutual fund, you may also consider opening an account with Iman Fund or any other mutual fund directly.
There may be fees depending upon which Asset Management Company or Brokerage firm you choose. Common charges may include start-up fees, maintenance fees, fees for changing investment or withdrawing money. Many companies offer a lot of fee free options. Please contact the company before opening up an account for more details.
With Iman Fund, you can open up an IRA account for minimum of $100 which is considered an investment and not fees. Other brokerage companies have their own rules. Please refer to their websites for more information.
Yes. Please carefully review the institution’s transfer and rollover policy, fees and charges before making a transfer.
Yes, and they include:
No. The two plans are separate, and one does not have an effect on the other.
A designated beneficiary (s) should be appointed to receive your IRA. The option of receiving the funds over time or as a lump-sum payment both exist.
The Fund invests in foreign securities, which involve greater volatility and political, economic, and currency risks and differences in accounting methods. It is possible that the Islamic Shari’ah restrictions placed on investments and reflected in the main investment strategies may result in the Fund not performing as well as mutual funds not subject to such restrictions.
Past performance is not indicative of future results.
Diversification does not assure a profit or protect against a loss in a declining market.
The Fund is not available for sale to investors residing outside the United States.
The prospectus contains more complete information, including risks, fees, and expenses related to an ongoing investment in the Fund. You may also receive the prospectus or summary prospectus by calling (877) 417-6161. Please read the prospectus carefully before you invest or send money.
While the fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for further details.
Allied Asset Advisors, LLC, an SEC registered investment advisor, is advisor to Iman Fund.
Iman Fund is distributed by Quasar Distributors, LLC.
The Iman FundAllied Asset Advisors, Inc.8925 S. Kostner AvenueHometown, IL 60456
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Call: (877) 417-6161 Office: (630) 789-0453 Fax: (630) 789-9455