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Regular Account
Regular mutual fund accounts are not subject to maximum investment
amounts and you may withdraw your funds at any time.
Individual Retirement Account (IRA)
Individual retirement accounts (IRAs) are investment accounts that
provide tax-deferred (traditional IRAs) or tax-free (Roth IRAs)
earnings. The maximum annual contribution is $4,000 or $4,500 if
you are 50 years or older. You may not withdraw from your IRA until
you are 591/2 without paying a penalty (some exceptions apply.)
Rollover IRA
You may "rollover" a distribution from another IRA, an
eligible rollover distribution from your employer's qualified
plan, or distributions from certain tax-deferred annuities or
accounts. If a distribution is rolled over, i.e. deposited to your
Forward Funds IRA within 60 calendar days of receipt, the amount rolled
over is not taxable.
Roth IRA
In order to qualify to contribute to a Roth IRA your income must
not surpass a certain level set by the United States Congress.
Withdrawals are tax free if you are 591/2 or older and opened
your account at least five years prior to withdrawing.
Simplified Employee Pension SEP-IRA
A SEP-IRA is a written arrangement that allows your employer to
make contributions toward your retirement via a traditional IRA.
Your employer will provide you with a copy of the agreement containing
participation rules and a description of how employer contributions may be made to your IRA. Your employer
must also provide you with a copy of the completed Form 5305-SEP
and a yearly statement showing any contributions to your IRA.
Coverdell Education Savings Account
A Coverdell Education Savings Account is a trust or custodial account
set up to pay qualified education expenses for the designated beneficiary
of the account. Contributions grow on a tax-deferred basis and
withdrawals are tax-free if used to pay for a broad range of educational
expenses, including tuition, fees, books and supplies. Funds from
the account may be used to pay for college, as well as public,
private and religious elementary and secondary school expenses.
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