• Retirement Savings

  One of the top goals for most people is saving for retirement. With their tax advantages¹ and easy eligibility, IRAs can be a powerful tool in saving for retirement. IRA funds compound and grow faster as the interest earned is not taxed each year.

• Easy Eligibility

  Anyone with earned income can open a Traditional IRA, and possibly a non-working spouse if a joint tax return is filed. There are income and tax filing eligibility requirements to open a Roth IRA.

• Easy to Open

  Most banks and brokerage firms offer IRAs along with several investment choices.

• Tax Deferred or Tax-Free Earnings

  Interest earned on a Traditional IRA is not taxed until you withdraw it. For most people, withdrawals start after retirement when they're typically in a lower tax bracket. Interest earned on a Roth IRA is tax-free if the accountholder made their first Roth contribution at least five years prior to the withdrawal and is 59-½ years of age. Consult with a tax advisor for specific information.

• Tax Break¹

  Traditional IRA contributions may be tax deductible dependent on your participation in an employer sponsored retirement plan and your MAGI.

• Investment Options

  You control how your IRA is invested. You can choose a low risk, high yielding FDIC bank certificate of deposit, or invest in stocks, bonds or mutual funds via a brokerage firm. You can move your IRA funds from one investment vehicle to another, or from one IRA Custodian to another via an IRA Trustee Transfer.

• No or Low Fees

  Many IRAs don’t charge set up, monthly or annual fees, and if they do, the fee is typically much lower than a 401(k)-advisor fee.

• Low Minimum Opening Balance Requirements

  Many IRAs have low opening balance requirements. Some as low as $100 to $1,000 depending on the investment vehicle.

• Early Withdrawal Tax Penalty Exceptions

  There are exceptions that allow you to make a withdrawal from your IRA plan prior to age 59-1/2 without incurring an early withdrawal tax penalty. One of the exceptions is for qualified first-time home buyers who are allowed to withdraw up to $10,000 penalty-free. Please see the IRS site for additional exceptions to tax on early distributions. If you have your IRA funds in a CD, the early withdrawal penalty for removing funds during the CD term may still apply.

• Traditional

  Anyone who has earned income is eligible to contribute to a Traditional IRA. However, the deductibility of the IRA is dependent on the accountholder’s participation in a qualified company retirement plan, their tax filing status¹, and their Modified Adjusted Gross Income (MAGI). There are no age or income limits; as long as you have earned income, you can keep contributing to a Traditional IRA. A spouse with no income may be able to open and contribute to an IRA as long as one spouse has earned income, the married couple file a joint tax return, and the combined contributions of both spouses don’t exceed the taxable compensation reported on the joint tax return.

• Roth

  There are two factors that determine whether you are eligible to contribute to a Roth IRA: your Modified Adjusted Gross Income (MAGI) and your tax filing status. If these totals are exceeded, you are not eligible to contribute to a Roth. There are no age limits; as long as you have earned income, you can keep contributing to a Roth IRA. A spouse with no income may be able to open and contribute to an IRA as long as one spouse has earned income, the married couple file a joint tax return, and the combined contributions of both spouses don't exceed the taxable compensation reported on the joint tax return.

  Roth MAGI Limits for 2024 :

  • Single tax filer: $ 161,000
  • Married, Joint Filing: $ 240,000

• SEP

  Any size business, including self-employed individuals, can establish a SEP IRA easily by adopting FORM 5305-SEP, a SEP prototype, or an individually designed plan document. SEP IRAs are funded by employer contributions for the business owner and eligible employees. The employer must contribute equally for all eligible employees.

Contribution Types

• Regular Annual Contributions

  Contribution limits apply. Please see the IRS site for current year contribution limits.

• Rollover

  Funds from existing IRA accounts, or an employer-sponsored plan such as a 401(k), 403(b) or 457(b) plan where the funds have been paid to you, the IRA customer, and you currently have possession of those funds.

• Direct Rollover

  Funds from an employer-sponsored plan such as a 401(k), 403(b) or 457(b) plan where the funds are held by the Plan Administrator and/or you, the IRA customer, received a check that is payable to the new IRA Custodian for the Benefit of (FBO) you, the IRA customer.

• Custodian/Trustee Transfer

  Direct movement of IRA assets by the IRA Custodians. You, the IRA customer, do NOT have possession of the IRA funds. The funds transfer is done between IRA Custodians/Trustees. Or you received a check that is payable to the new IRA Custodian for the Benefit of (FBO) you, the IRA customer.