Retirement Savings

Traditional IRA 


Product Benefits: 

Increased savings potential with tax free contributions, and tax deferred earnings. 


Eligibility

Must have earned income and be under age 70½ by the end of the calendar year.


Maximum Annual Contribution 

  • Total contributions to all IRAs may not exceed the following amounts $5,500 if under age 50 or $6,500 if over age 50 
  • There are no dollar limits on Rollover contributions.
  • Contributions must not exceed annual earned income. 


Federal tax treatment of contributions 

  • Tax Free as long as you’re not covered by an employer’s retirement plan. 
  • Taxable if both you and your spouse are covered by an employer retirement plan and your 2017 Modified Adjusted Gross Income (MAGI) is above: $99,000. if filing joint or $72,000 if single. 
  • Taxable if either you or your spouse is not covered by an employer retirement plan and your 2017 MAGI is above $196,000. 


Tax-deferred growth 

Yes 


Account Access without penalty 

Accessible after age 59½ without penalty, unless a qualified exception applies. 


Federal tax treatment of distributions 

Generally taxable, unless contributions were non-deductible. 


Penalty for non-qualified distributions. 

10% + Tax on distribution amount 


Required Annual Distributions 

  • Must begin by April 1 of the year after the year you turn 70½. 
  • If minimum distributions are not made, a 50% penalty tax will apply against the amount that should have been withdrawn. 


Roth 

Product Benefits 

  • Pay income taxes on your contributions at today’s tax rates, but enjoy tax free distributions. 
  • Contribution limits may apply.


Eligibility 

  • No age restrictions. 2017 MAGI of less than: 
  • $133,000 if tax filing status is single 
  • $196,000 if Married filing jointly 


Maximum Annual Contribution 

  • Limits for MAGI earners of less than: $118,000 for single, or $186,000 for joint: 
  • $5,500 if under age 50 
  • $6,500 if over age 50 
  • There are no dollar limits on Rollover contributions. 
  • Limits are phased out for MAGI earners between: 
  • Single: $118,000 – $133,000 
  • Joint: $186,000 - $196,000 
  • Contributions must not exceed annual earned income. 


Federal tax treatment of contributions 

Contributions are Taxable. 


Tax-deferred growth 

Yes 


Account Access without penalty 

Accessible after age 59½ and contributions have been invested for at least 5 years, unless a qualified exception applies. 


Federal tax treatment of distributions

Tax Free for qualified distributions. 


Penalty for non-qualified distributions. 

10% + Tax on distribution amount 


Required Annual Distributions 

Not applicable 


Other exceptions may apply. Go to www.irs.gov or seek the advice of a qualified tax advisor to see if our distribution qualifies to be penalty free.