IRA
Overview
We offer three different types of Individual Retirement Accounts, Roth, and Traditional. There are different requirements, contribution amounts, and tax advantages for each of these IRAs.
Account Types
Roth IRA (2018)
Who Can Contribute?
Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation) with the following MAGI (modified adjusted gross income from the federal tax form):
Up to $120,000.00 (single filers)
Up to $189,000.00 (jointly filers)
Reduced contributions allowed for higher incomes (up to $135,000.00 for single filers, and $199,000.00 for joint filers).
How Much Can I Contribute?
Total combined contributions to Roth and Traditional IRAs up to $5,500.00/year (Aged Under 50), $6,500.00 (Aged Over 50), or 100% of compensation, whichever is less.
What are the Tax Advantages?
Most contributions can be withdrawn tax and penalty-free at any time. After the account has been open five tax years, earnings can be withdrawn tax and penalty-free for any of these reasons: age 59½, disability, beneficiary, or a first-time home purchase (lifetime limit for exemption on a first-time home purchase is $10,000.00). Earnings can be withdrawn penalty-free for the same reasons as those for penalty-free withdrawals from traditional IRAs (withdrawal may be subject to tax).
Traditional IRA (2018)
Who Can Contribute?
Anyone under age 70½ who has income from compensation (or who is filing jointly with a spouse who earns compensation).
How Much Can I Contribute?
Total combined contributions to Roth and Traditional IRAs up to $5,500.00/year or 100% of compensation, whichever is less.
What are the Tax Advantages?
Earnings grow tax-deferred until withdrawn, and contributions may be tax-deductible.
