Who
is eligible to open an IRA Account?
Anyone
with lest that 70 years olds and a half (70 ½) at the end of
tax year, who have income from salary, journals,
self-employment, bonds, commissions or professional services
even if the person has another retirement plan or pension.
How
much can you contribute to the IRA account annually?
You
can contribute and annual maximum of US$ 3,000 or you adjusted
gross income amount , the lesser of both. In case of a married
couple who present a joint tax form, the maximum amount
can't be higher that US$ 6,000 annually or the adjusted gross
income, the lesser of both. Each member of the couple must has
their IRA in separate accounts.
Do
I have to deposit every year?
No,
but is recommendable that you do, because your deposit is
a deductible of your tax form and it contribute towards your
retirement funds.
When
can I withdraw my money?
At
any moment, but it is recommendable that you withdraw it
after you are 60 years old, because the law imposes a 10%
penalty to individuals that withdraw before been 60 years old.,
unless they are using the money to buy their first principal
home, are paying educational expenses from direct dependents,
permanent disability, or death. Only in those cases the government
will not impose the 10% penalty. You are required to star
withdrawing the fund after the natural year when you have 70 ½
of age. The withdrawal made before the ending date are subject
of PraicoLife penalty charges, which are:
| Contract
Year |
Charge |
| 1 |
7% |
| 2 |
6% |
| 3 |
5% |
| 4 |
4% |
| 5 |
3% |
| 6 |
0% |
What
is the account statement period?
PraicoLife
will send you a account statement each three (3) months where
you will have detailed information about the earned interest,
your accumulated balance and the period's transactions.
Where
PraicoLife invest your money?
As
required by law PraicoLife invest in no less than 34% in obligations
of Puerto Rico Government or any of its agencies, financial
instruments, or mortgage loans for the acquisition of
construction of residential properties or loans for Special
Corporations, Worker's Property or any other financial
instrument approved by the commissioner. No more that 50% of
general financial instruments in Puerto Rico, and up to 33% in
USA financial instruments. Your money will be invested in the
moment of acquisition in obligations with the highest four (4) classifications.
If
you want to apply for an IRA account, press on the next links.
Please note that the file you are about to download is in Adobe
Acrobat format (*.pdf) and you will need the Adobe Acrobat or
Acrobat Reader program to view/print it. Get it free by clicking here.
