Individual Retirement Accounts

Traditional IRA: A tax deferred personal savings plan, which means all the earnings you accumulate remain tax deferred until you make withdrawals from the account.

  • Contributions may be tax deductible
  • To make contributions, you must be under age 70 1/2 for the year and earned compensation or received alimony
  • For tax year 2013, the maximum you can contribute is $5,500 (must have earned income equal to or greater than the contribution)
  • For qualified individuals age 50 or older, you can contribute up to $6,500
  • Funds can be withdrawn (without penalty) any time after you reach age 59 1/2. Some exceptions qualify, call for more details.

Roth IRA: A personal savings plan to which participants are able to make annual non-deductible contributions and earnings may be tax free.

  • Tax deferred earnings
  • No restriction on contributions
  • For tax year 2013, the maximum you can contribute is $5,500 (must have earned income equal to or greater than the contribution)
  • For qualified individuals age 50 or older, you can contribute up to $6,500
  • Funds can be withdrawn (without penalty) any time after you reach age 59 1/2. Some exceptions qualify, call for more details.

IRA Investment Options: Once you select the type of IRA, you must choose which investment option you prefer. 

  • Passbook IRA - the ability to make smaller, unlimited contributions
  • Certificate of Deposit IRA - the ability to make larger contr ibutions and earn a higher rate.