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- If minimum distributions are not made, a penalty tax of up to 50% may apply against the amount that should have been withdrawn.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.