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The IRA is a convenient savings program that allows money to be
set aside for retirement. Withdrawals from an IRA may be made without
penalty after reaching age 59½. A substantial interest penalty,
as required by law, is charged for early withdrawals from an IRA.
Choose any of our Traditional or Roth IRA options from 30 days to
60 months with a minimum opening deposit of $1,000.
- THE TRADITIONAL IRA:
If you are under the age of 70 1/2 for the entire year AND have
earned income, you are eligible to establish or contribute to
a Traditional IRA and may receive a tax deduction for your contribution.
If you are not a participant in another employer sponsored retirement
plan, your contribution will be tax deductible, no matter what
your income. If you are a participant in an employer-sponsored
plan, you are still eligible to contribute, but all or part
of your contribution may be non-deductible. See our IRA experts
for details.
- THE ROTH IRA:
You can contribute to a Roth IRA if you have earned income AND
your modified adjusted gross income (MAGI) does not exceed certain
limits. With a Roth IRA, your contributions are not tax deductible,
but your interest and withdrawals from the account are completely
tax-free after a five-year holding period. There is also no
age restriction on contributions to a Roth IRA. See our IRA
experts for details.
Recent tax law changes allow individuals to contribute up to
$3,000 per year or 100% of compensation, whichever is less.
Special "catch up" contributions for those 50 and
over were established in 2002.
- Click Here for Current
Rates.
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