Tax-deferred retirement plans in which taxes are not paid on the money invested or earned until withdrawal.
- Maximum annual contribution of $5,500 ($6,500. If age 50 or older) or 100% of an individual’s earned income, whichever is less; a total of $10,000 ($12,000 if age 50 or older) may be made if married and filing jointly.
- Fixed-rate CD or variable-rate account options available.
- All interest earned is tax-deferred until withdrawal.
- No IRS penalty for withdrawal at age 59 1/2 and over.
- At age 59 1/2, withdrawal options of one lump sum payment or monthly, quarterly or annual payments.
- 10% IRS penalty for early withdrawal.
- Investors can withdraw money from their IRA before turning 59 1/2 without penalty for a qualified first-time home purchase (up to $10,000) or for higher education expenses.
- Upgrade option at age 59 1/2 and over – ask us for details.
- Please consult with your tax advisor about any and all IRA transactions.
Consumers can now enjoy the benefits of the Roth IRA and the significant improvements to traditional IRAs. Created by Congress, the Roth IRA is a non-deductible IRA that allows for tax-deferred earnings and potentially income tax-free distributions if distributions are qualified.
- Income tax-free distributions. One of the advantages of the Roth IRA is the income tax-free distributions. A traditional IRA only allows tax deferral. In other words, the government collects its tax at the time of distribution. Distributions from the Roth IRA are income tax-free if used for a qualified purpose.
- Qualified distribution reasons. Qualified distributions from a Roth IRA include distributions made for first home purchases (up to $10,000 lifetime), age 59 ½ or older, death, and disability. The distributions must also meet a five-year holding period requirement in order to qualify.
- $5,500 contribution limit. The contribution limit for a Roth IRA is $5,500 ($6,500 if age 50 or older) but must be coordinated with any traditional IRA contribution. Eligible individuals are allowed to contribute $5,500 ($6,500 if age 50 or older) maximum between both the Roth IRA and the traditional IRA.
- Eligibility. The Roth IRA is available to single filers with earned income below $105,000 and married couples filing jointly with incomes below $166,000. (Phaseout ranges exist for individuals making more than those amounts.) Age 70 ½ requirements do not apply to Roth IRAs.
- Rollovers from traditional IRAs. Your traditional IRA assets may be rolled into a Roth IRA to take advantage of income tax free distributions in the future; however, the taxes on the rollover must be paid within that year.
Please consult with your tax advisor about any and all IRA transactions.
Check with one of our Customer Service Representatives for more information on the Roth IRA and expanded traditional IRAs or contact us at (912) 375-4228.