Retirement Planning |
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Traditional Individual Retirement Accounts (IRAs) |
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- $500 minimum required
- No opening fees
- Annual statements provided
IRA Fees:
- IRA transfer fee (to another bank) $25
- IRA withdrawals (3 free per year) $25 for each after 3
- If IRA is closed less than 90 days of opening a $50 early closeout fee will be assessed
An Individual Retirement Account (IRA) enables you to accumulate the funds you want to retire in the style about which you dream. Certain contributions to IRAs are tax deductible for the year they are made up to the contribution deadline (see table on the right) and are based upon IRS guidelines.** All earnings on your IRA remain tax deferred until you make withdrawals, which are then taxed as income during the tax year of their withdrawal.
There are substantial penalties for early withdrawal. Deposits are insured up to $250,000.
**Consult a Tax Advisor for specific information.
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Characteristic
Characteristic
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Traditional Individual Retirement Accounts |
|---|---|
| Individual Annual Contribution Limit* | $6,000.00 |
| Earned Income Requirement | Contributions may not exceed 100% of earned income |
| Spousal Contributions | Allowed if married filing jointly, generally up to $6,000 each |
| Contribution Deadline | Individual's tax filing deadline, not including extensions |
| Minimum Age for Contributions | None |
| Maximum Age for Contributions * | Must be under age 70 ½ for entire year to make a regular contribution for the year. |
*For individuals who have reached the age of 50 before the close of the tax year, the contribution limit is $6,500 for 2016.
