Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs) are personal savings vehicles that offer tax advantages as you plan for retirement. Learn the difference between traditional IRA accounts, Roth IRA accounts and Rollover IRA accounts to determine which one is best suited for your individual saving needs.

Traditional IRA Accounts

A traditional IRA is a tax advantaged savings vehicle available to any wage earner under age 70 ½.

Benefits

  • Contributions may be tax-deductible
  • Tax-deferred earnings help your savings grow – only pay taxes when you withdraw the funds
  • Withdraw funds without penalty prior to age 59½ for certain expenses (income taxes apply)

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Yearly maximum contribution $5,500
Are withdrawals required? When you turn 70.5
Do age limits apply? Yes
Do catch-up contributions apply? Yes

Roth IRA Accounts

A Roth IRA is a tax advantaged savings vehicle available to certain wage earners depending on income and tax filing status.

Benefits

  • Potentially tax free distribution of assets
  • Unrestricted access to your contributions at any time, without IRS penalty
  • No minimum required distributions at age 70½

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Yearly maximum contribution $5,500
Are withdrawals required? No
Do age limits apply? No
Do catch-up contributions apply? Yes

Rollover IRA Accounts

A rollover IRA provides the ability to maintain the tax deferred status of an employer retirement plan.

Benefits

  • Greater flexibility in choosing investments plus retirement savings continue growing tax-deferred
  • The ability to consolidate multiple employer plans into one resource
  • The ability to withdraw money from your IRA more easily than from an employer plan  

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Yearly maximum contribution Not applicable
Are withdrawals required? When you turn 70.5
Do age limits apply? No
Do catch-up contributions apply? No