Individual Retirement Accounts (IRA) create value for you to save for your retirement years and for funding education expenses.
Please call for more information on Individual Retirement Accounts. Start one today, for only $100.00, then add to it whenever you wish.
- Must have earned income and not reach age 70½ by end of year
- Annual IRA contributions: $4,000 in 2005 and $5,000 in 2008
- Annual limit applies to any combination of IRA plans other than the ESA
- Contributions are fully tax-deductible if you are not an active participant in an employer retirement plan
- Contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan, otherwise phase-out rules apply.
- Investments grow on a tax-deferred basis
- Earnings are taxed only upon withdrawal
- Opportunity for early withdrawal - Ask us about special circumstances
- Contribute to a Roth IRA even after age 70 ½, with earned income
- Contributions will not be tax deductible, but the contributions and earnings can be withdrawn tax-free.
- Same contribution limits as Traditional IRA listed above.
- No required minimum distributions after reaching age 70 ½.
- Convert your traditional IRA to a Roth IRA, to take withdrawals tax-free, but is subject to income tax now.
- Opportunity for early withdrawal - Ask us about special circumstances
- If you have reached age 50, make additional $500 catch-up contributions per year to a Traditional or Roth IRA and $1,000 in 2006
