The rules for IRAs are similar to those for other tax qualified
retirement plans: You may take withdrawals, without penalty, after age 59 1/2; you must start withdrawals after age 70 1/2.
Most plans of minimum deposit insurance can be best explained as follows: (1) cash values are borrowed at a relatively low rate of interest; (2) borrowed cash values are used to pay premiums; (3) if any 4 out of the first 7 years' premiums are paid from unborrowed funds and borrowing in the other 3 years does not exceed the annual premiums, the policy is considered "tax qualified
" and the interest paid on the borrowed cash values is deductible within the limits established under IRS regulations; (4) if the interest is deductible, after-tax cost is reduced; (5) if desired, beginning in the 8th year, both the premium and the after-tax cost of interest payments can be borrowed.
[section] 222.21(2)(a), both before and after its amendment, an IRA that is tax qualified
under [section] 408 of the Internal Revenue Code (a traditional IRA) or [section] 408A of the Code (a Roth IRA) generally is exempt from creditors' claims both in federal bankruptcy proceedings and for state law purposes.
The IRS consolidated four correction programs for tax qualified
plans into a single Employee Plans Compliance Resolution System (EPCRS).