Retirement Savings

Traditional IRA 


Product Benefits: 

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


Eligibility

Must have earned income.


Maximum Annual Contribution 

  • Total contributions to all IRAs may not exceed the following amounts $7,000 if under age 50 or $8,000 if over age 50.
  • There are no dollar limits on Rollover contributions (one rollover per rolling calendar year).
  • Contributions must not exceed annual earned income. 


Federal tax treatment of contributions 

  • Contributions may be tax deductible. Please consult with your tax professional.


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 73. 
  • If minimum distributions are not made, a penalty tax of up to 50% may apply against the amount that should have been withdrawn. Please consult with your tax professional.


Roth 

Product Benefits 

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


Eligibility 

  • Must have earned income.
  • No age restrictions.  
  •  Please consult with your tax professional for annual income restrictions.


Maximum Annual Contribution 

  • $7,000 if under age 50 
  • $8,000 if over age 50 
  • There are no dollar limits on Rollover contributions (one rollover per rolling calendar year). 
  • Contributions must not exceed annual earned income. 


Federal tax treatment of contributions 

Contributions are Taxable. 


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 your distribution qualifies to be penalty free.