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Individual Retirement Account (IRA)

An Individual Retirement Account could be the key to a worry-free financial future

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An Individual Retirement Account, or IRA, is an account that allows you to set aside money for retirement while getting a tax benefit. The two main types of IRAs are traditional IRAs and Roth IRAs. Each type has a different set of tax advantages, rules, and limits that may make them the right choice for your situation.

Roth IRA Details

  • You pay taxes on the money you put in the account, but withdrawals are not taxed.
  • You can withdraw your contributions (but not earnings) at any time without taxes or penalties.
  • After you reach age 59-1/2, you can withdraw contributions and earnings without taxes.
  • There are no age limits to open or contribute to a Roth IRA.
  • There are no required distributions at any time.
  • Eligibility and contribution amounts could be limited by your income.

Traditional IRA Details

  • The money you put in the account may be tax deductible, but withdrawals in retirement are taxed.
  • Contributions can be used to lower your taxable income.
  • You must stop contributing at age 70-1/2.
  • You must begin taking a minimum amount out of the account, called a required minimum distribution, at age 70-1/2.
  • Distributions before age 59-1/2 trigger a 10 percent early withdrawal penalty in addition to being included as taxable income, with a few exceptions for specific circumstances.

IRA Contribution Limits

  • The contribution limit is the maximum combined amount you may put into traditional and Roth IRAs.
  • 2019 contributions cannot exceed $6,000. If you’re 50 or older, the limit is $7,000 to allow you to make catch-up contributions.
  • You can’t contribute more than you earn.

IRA Income Limits

  • Income is measured by your modified adjusted gross income (AGI).
  • For Roth IRAs, high earners are able to contribute less, and if your income is over the limit you may not be able to contribute at all.

Fixed Rate IRA

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Variable Rate IRA

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Easy Save IRA

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