Individual Retirement Plans
Secure your future
Is an IRA Right For You?
You might be able to save on your present taxes with an IRA by deducting your qualified contributions from your taxable income. Many Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service.
With an IRA Account, you may also be able defer taxes until you retire when you will probably be in a lower tax bracket. You may want to consult your tax advisor to review the tax deductible status of an IRA. Regardless of the amount you’ll be able to save now on taxes, an IRA is a smart way for you to save for a secure retirement.
If You’re Changing Employers, An IRA Rollover Makes Sense.
If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us.
| Traditional IRA | Roth IRA | Rollover Details |
|---|---|---|
| Individuals may contribute to both a Traditional and a Roth IRA in the same year. | Individuals may contribute to both a Traditional and a Roth IRA in the same year. | A rollover is the transfer of money from one retirement plan or account to another. Funds maintain tax-deferred status if rolled into another tax-deferred account. |
| Total contributions can not exceed the IRS contribution limit. Individuals age 50 or older may contribute more. | Total contributions can not exceed the IRS contribution limit. Individuals age 50 or older may contribute more. | The benefits of a rollover should be weighed against the benefits of keeping your money with your former employer's plan. |
| Earned income must be greater or equal to the contribution amount. | Earned income must be greater or equal to the contribution amount. | |
| Contribution is tax-deductible if individual is not covered by an employee-sponsored plan. | Contributions are not tax deductible. | |
| Contributions may be tax-deductible up to contribution amount if covered by an employer-sponsored plan, depending on Modified Adjusted Gross Income (MAGI). | Earnings and withdrawals are tax-free when certain requirements are met. | |
| Individuals can contribute to a Traditional IRA even if the contributions are not tax-deductible. | ||
| Earnings grow tax-deferred and are taxed as ordinary income upon withdrawal. |
