An Individual Retirement Account (IRA) is a retirement savings program. The contributions to a Traditional IRA may or may not be tax deductible (please consult tax advisor); however, the earnings are tax deferred until withdrawn. Contributions to a Roth IRA are not tax deductible but earnings withdrawn may be tax-free.
In order to make regular contributions to a Traditional or Roth IRA, you must receive earned income. Earned income means wages, salaries, professional fees, or other amounts received for personal services rendered. Compensation also includes earned income for self-employed persons. Compensation does not include earnings and profits from property, such as interest and dividends, rental income or amounts not includable in gross income.
Annual contributions, deductible or not, are limited to $11,000 (with no more than $5,500 per person). An individual may not contribute more than an aggregate of $5,500 to the Traditional and Roth IRAs in one tax year. Individuals age 50 and older may contribute an additional $1,000.
In some cases, a non-working divorced person receiving alimony may contribute up to $5,500 annually to an IRA.
Contributions may be added to an IRA between January 1 of the current year and April 15 (or actual tax filing deadline, i.e. April 15 falls on a holiday or Sunday) of the next year.
Talk with our IRA consultants concerning specific information about rates, IRS guidelines and account procedures by calling (800) 467-5427.
All rates and offerings subject to change.
It is critical for everyone to save and invest money, even if you can only afford to save a little. You will need the money for unplanned expenses, major purchases and your retirement. You may also want to help pay for your child's education. Here is helpful information to help you figure out how to save, how to invest and how much money you will need to save.
401k and 403b Retirement Plans - 401k and 403b retirement plans offer lots of pre-tax investment options and are a great way to save for retirement.
College 529 Savings Plan - Learn the advantages and disadvantages of using 529 plans vs. pre-paid tuition plans to save for your child's college education.
How Much to Save for Retirement - Do you have a retirement plan? It's important to create a plan based on how you will invest and how much money you will need.
Individual Retirement Accounts (IRAs) - Learn if investing in a Traditional IRA or Roth IRA makes sense for you.
Planning for Emergencies - Making savings a priority each pay day will enable you to successfully save money for major purchases, retirement or other financial goals.
Social Security - When planning for retirement, it's important to understand the amount you can expect to receive from Social Security and how old you must be to qualify.