Certificates of Deposit
Individual Retirement Accounts
You can contribute to a Traditional IRA if you earn compensation and you will not reach age 70 1/2 by the end of the year. If you file a joint tax return, you can treat your spouse’s compensation as your own (except your combined contributions cannot exceed your combined compensation). All earnings in the Traditional IRA are not taxed until they are withdrawn. The ability to defer taxes on the earnings, and to withdraw in a year when you may be in a lower tax bracket, can mean more after-tax dollars for your retirement. See your tax advisor to determine if your contributions are tax deductible.
Unlike Traditional IRAs, your contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free. Of course, you must conform to the plan provisions to get this tax-free advantage. You are eligible if you earn compensation and your income is less than limits set by Congress. A single filer who has modified adjusted gross income (MAGI) up to $95,000 can make the full Roth IRA Contribution for that year. Each spouse filing a joint federal income tax return showing a MAGI up to $150,000 can make the full Roth IRA contribution for that year. Some people with higher MAGI may be able to make smaller contributions.
We can help. Whether you have recently switched careers or your position has changed, leaving your wealth in your previous employer’s plan may not be the best solution. We’ll help roll over your existing IRA and provide strategies to aid with your new opportunities.
Use direct deposit or a payroll deduction to establish a regular savings plan. We can even help set up an automatic transfer for you!