What Is A Traditional IRA?
A Traditional IRA is a special savings plan authorized by the Federal government to help you accumulate funds tax deferred for your retirement.
A Traditional IRA is a special savings plan authorized by the Federal government to help you accumulate funds tax deferred for your retirement.
Every individual who has earned income or received alimony may contribute. Income from other sources such as investments or inheritances does not qualify.
Yes, but your contribution may not be fully deductible. Consult with a tax advisor for more information.
All the earnings you accumulate in your Traditional IRA remain tax sheltered until withdrawal.
An individual could contribute up to a limit set by the Federal government, but all of contribution may not be a fully deductible contribution. Consult with a tax advisor for more information.
Must I Contribute The Full Amount Each Year?
No. You can contribute any amount your budget allows, either in one or more contributions. In fact, if you choose, you need not make any contributions in a given year.
Withdrawals are permitted after age 59½ or earlier with a qualified exception.
Withdrawals prior to the age of 59½ or without a qualified exception generally have an additional 10% tax applied. The bank may impose a penalty also.
Generally, distributions are taxable in the year you receive them.
Yes, a Traditional IRA can be converted to a Roth IRA.
Yes, you may transfer from one Traditional IRA to another Traditional IRA tax-free. Rollovers from one Traditional IRA to another Traditional IRA are limited to one time per year tax-free.
Yes. When you pass away, the entire proceeds can be passed to your beneficiaries.
You can open or make contributions to your Traditional IRA any time up to and including the due date of your tax return for the previous tax year, normally April 15th.
The information contained on this website is not intended to provide specific advice or recommendations for any individual. We suggest that you consult your attorney, accountant, tax or financial adviser with regard to your personal situation.