Traditional IRAs

  • To make regular contributions, IRA owner must be under age 70 ½ and earning compensation or filing taxes jointly with a spouse who earns compensation.
  • Federal income taxes are deferred on earnings until time of withdrawal.* 
  • Early Distribution (or Penalty) Tax may be charged against withdrawals, depending on owner’s age and reason for the withdrawal.*
  • Contributions are frequently tax-deductible.*
  • Contributions for the previous year may be made up to tax filing day of the current year.
  • Contribution limits are determined by tax year, age and filing status, as well as participation in other plans.  However, owners age 50 and over may be eligible to make additional “catch-up” contributions.
  • IRS requires that owners begin receiving Required Minimum Distribution (RMD) payments from the IRA at age 70 ½.
  • Funds can be contributed by the owner, rolled into the IRA from another Traditional IRA, or transferred directly from Qualified Retirement Plans (QRPs).

Fees could reduce the earnings on the account.

*Consult with a qualified professional for tax advice.

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