Traditional IRA

For long term savings, we encourage you to set up an Individual Retirement Account (IRA). It’s the best way to guarantee a worry-free retirement and contributions may be tax deductible. A Individual Retirement Account is a special savings plan authorized by the Federal Government to help you accumulate funds for your retirement.

The Traditional IRA offers tax-deferred growth of your contribution and earnings. Upon distribution after age 59½, your deductible contributions and earnings are fully taxable as ordinary income.

Traditional IRA Contribution Limits

  • The 2016 annual contribution limit is $5,500 per taxpayer if you are 49 years old or younger
  • The 2017 annual contribution limit is $5,500 per taxpayer if you are 49 years old or younger

Catch-Up Contributions for Persons 50 Years Old or Older

  • The 2016 catch-up contribution limit is $6,500 per taxpayer if you are 50 years old or older
  • The 2017 catch-up contribution limit is $6,500 per taxpayer if you are 50 years old or older

Spousal – Married Filing Jointly

  • The 2016 contribution limit is $11,000 per taxpayer if you are 50 years old or older
  • The 2017 contribution limit is $11,000 per taxpayer if you are 50 years old or older

Distributions

  • Distributions are fully taxable as ordinary income on earnings and any deductible contributions. Non deductible contributions are not subject to tax
  • Withdrawals are permitted anytime after age 59½ but must start by April 1 following the year in which the participant turns 70½. After 59½ the participant must make withdrawals even if still earning an income
  • Penalties for early withdrawal

Click here to read the 2016-2017 edition of the IRA Newsletter for valuable information.

Retirement calculators will help project your long-term IRA balances.

Your funds are insured separately up to $250,000 by the NCUA.

For information regarding Roth IRAs, click here.

For information regarding Coverdell IRAs (Educational), click here.