IRA’s
An individual retirement annuity or account is a savings program created under the Income Tax Act and/or the Internal Revenue Code of Puerto Rico of 1994, as amended. An IRA may be established by a savings account with a financial institution or through an annuity contract with a life insurance company.
The individual retirement annuity or account may be set by the eligible individual directly; by an employer for the benefit of its employees or beneficiaries; or by an association of employees for the benefit of its employees, members, or beneficiaries.
Who is eligible to open an individual retirement annuity or account? Anyone under 75 years at the close of the taxable year, who receives income attributable to profession or occupation, or income from wages, salaries, tips, bonuses, commissions, or compensation for professional services is eligible. Moreover, a spouse can establish a retirement account on behalf of another individual even if this other individual does not receive income.
Triple-S Vida’s individual retirement accounts will offer triple guarantee:
- No risk to the principal, as the growth of your account is guaranteed
- Current competitive interest
- Guaranteed minimum interest rate
Triple-S Vida offers three types of individual retirement account:
Triple IRA Exenta
The Income Tax Act and/or the Internal Revenue Code of Puerto Rico of 1994, as amended, allows you a deduction for contributions of up to $5,000 on your income tax return, or $10,000 for married couples filing a joint return. If, besides the IRA, you have participation in deferred compensation plans such as 401k or 165e, the sum of the IRA and the contributions to these plans cannot exceed $8,000. You can make contributions as long as at the close of the taxable year you have not reached 75 years of age.
If you are the beneficiary of an individual retirement account, you can begin to receive the accumulated savings in your account from the date on which you turn 60. This distribution must begin no later than the close of the taxable year in which you turn 75.
Triple-S Vida’s Triple IRA Exenta offers the following advantages:
- Interests (which may vary from one year to the entire tile the account is active)
- Exempt interest rate guaranteed for the term indicated in the contract
- Deferred taxes on principal until the date on which the contributions are withdrawn
- 100% tax-free interests
- Guaranteed exempt interests
- No opening charges
Triple-S Vida has alternatives for you to choose the individual retirement account that best suits your needs. The difference between the offered products can be, among others, the prevailing interest rates, the guaranteed minimum interest or the redemption charge period, and the warranty of interest period that may vary from one year to as long as the account is active.
Triple IRA Roth
The Roth IRA or non-deductible individual retirement account is an IRA whose contribution cannot be deducted from your income tax return. The money contributed to the Roth IRA is subject to tax. However, the money accumulated in the Roth IRA will be completely exempt of taxes, principal, and interest when you retire from the account, provided you have reached 60 years of age at retirement.
The maximum contributions available by law are up to $5,000. If besides the IRA you participate in deferred compensation plans such as 401k or 165e, the sum of the IRA and contributions to these plans cannot exceed $8,000. You can contribute to a Roth IRA and a traditional IRA provided that the combination of contributions for both types of accounts does not exceed the $5,000 allowed by law. You can only deduct from your income tax returns the portion contributed in the traditional IRA.
Another point that differentiates this product is that this type of non-deductible individual retirement account can be used as collateral.
Triple IRA Segura
This IRA is designed to stimulate saving and establish a fund to supplement your retirement. Your contributions are tax deductible and deferred. Among its benefits is a competitive interest of 1.00% guaranteed for the first five years. Moreover, as there are no maintenance or sale costs, 100% of your money will be working for you. With IRA Segura you will not lose access to your money, since you can get up to 10% of the value of it without paying early liquidation fees.
If you wish, you can purchase a supplement for premium accreditation for disability, with which the contract will be credited with a disability deposit. All this comes with the comfort of knowing that Triple-S Vida insures your investment.
Flexible Premium Deferred Annuity
This is fixed annuity designed to help people accumulate money for the time of their retirement. A fixed annuity allows assets with deferred taxes until the person decides to start making withdrawals from it for retirement. With this product you can withdraw up to 10% of the annual value on the anniversary of the contract every year free of charge.
Interest accrued with this product are deferred, which means that you do not pay contributions until withdrawing the money, and the death benefit is not subject to payment of contributions by the Inheritance Law.
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