IRAs

IRA TYPES AND TERMS

Traditional IRA
  • An account that allows you to defer taxes on your earnings until they are withdrawn.
  • Certain contributions are tax deductible in the tax year for which they are made.
  • You must be under age 70½ for the entire year and have earned income (or your spouse must have earned income) to be eligible for a traditional IRA.
  • Consult your tax advisor regarding your tax needs. 
Roth IRA
  • A nondeductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period.
  • Since Roth IRA contributions are nondeductible and taxed in the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from this type of an account than from a traditional IRA.
  • To be eligible to contribute to a Roth IRA, you must have earned income (or your spouse must have earned income) and your modified adjusted gross income (MAGI) cannot exceed certain limits.
  • Consult your tax advisor regarding your tax needs. 
Terms
  • A variety of terms are available to meet your investment needs from three to sixty months