Individual Retirement Account (IRA)

An Individual Retirement Account (IRA) is a special savings plan insured up to $250,000 by the Federal government to help you accumulate funds for retirement. Any individual who has earned income or received alimony may contribute to an IRA. Income from sources such as investments or inheritance do not qualify.

Traditional IRA

• Often, contributions are 100% deductible.
• Earnings grow tax-deferred.
• Distributions are generally taxable, but penalty-free if withdrawn under one of the following circumstances:
  • Attaining age 59 1/2.
  • Incurring a disability.
  • Payment for certain health insurance, medical expenses, and higher education expenses.
  • Payment for a first home purchase.
  • Taking equal, periodic payments.
  • Death (payments to beneficiaries).
  • IRS tax levy.
• Distributions are required to be taken by Traditional IRA holders beginning at age 72

Roth IRA

• Contributions are never deductible.
• Earnings can grow tax-free.
• Contributions can generally be distributed tax-free at any time.
• Earnings can be distributed tax-free if the Roth IRA holder first made a Roth IRA contribution at least five years ago AND one of the following events occurs:
  • Attaining age 59 1/2.
  • Incurring a disability.
  • Purchasing a first home.
  • Death (payments to beneficiaries).
• Distributions are not required to be taken by Roth IRA holders at age 70 1/2.

Please stop in to visit with a personal banker regarding your IRA needs.