Structured Settlements Versus IRA

Americans who have reached age 50 have the ability to contribute more to their retirement account under the “catch up” provisions of the 2002 legislation. The amount of the “catch up” for Traditional and Roth IRAs is capped at $1,000 for 2006. In order to qualify, an individual must have reached the age of 50 in the year in which they make the “catch up” contribution.

Structured settlements have no such limitation. No matter what your age or income you can agree to up to 100% of your share of the present value of your settlement in the form of a structured settlement.  With a structured settlement there is no pre-59 1/2 penalty for receiving scheduled payments prior to 59 1/2.

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