The time to start saving for retirement is now! No matter what your age, IRAs are an essential element of retirement planning and can help you build a bigger nest egg. We can help you choose which account is best for you.
Our IRAs offer:
- Consistently above market dividends—View our current Rates.
- Principal protection
- Insurance up to $250,000 by the NCUA (No risk!)
- Tax advantages (Ask your tax advisor for details)
Traditional IRAs— Earnings in this account are normally tax-deferred until withdrawn after age 59 ½, although any withdrawal from a Traditional IRA is taxable at some point. Penalty-free withdrawals can be made for qualified reasons such as qualified education expenses, first-time home purchase, at age 59 ½, if you become disabled, etc.
Roth IRAs—Contributions are not deductible for the year in which they are made, however contributions can be withdrawn tax- and penalty-free at anytime. Also, the earnings in an Roth IRA account are not taxable provided the account has been open for five tax years and the withdrawal is for a qualified reason (i.e. after age 59 ½, first-time home purchase, owner becomes disabled, etc.).
Annual limitations for IRA contributions, modified adjusted gross income (MAGI) limits for IRA contribution deductibility and Roth IRA eligibility, and MAGI limits for those seeking an income tax credit for retirement saving contributions have slightly different indices than those used for determining Cost-of-Living Adjustments (COLA) for employer plans.
The IRS news release did not increase the Traditional/Roth IRA contribution limit for 2018. The IRA contribution limit for Traditional and Roth IRAs remains $5,500 (plus $1,000 for catch-up contributions for 50 and older, which are not subject to COLAs). The 2018 COLAs are as follows:
Traditional IRA deduction MAGI ranges:
- Single active participant: $63,000-$73,000
- Married active participant filing a joint income tax return: $101,000-$121,000
- Married active participant filing a separate income tax return: $0-$10,000
- Spouse of an active participant: $189,000-$199,000
Roth IRA contribution MAGI ranges:
- Single individual: $120,000-$135,000
- Married individual filing a joint income tax return: $189,000-$199,000
- Married individual filing a separate income tax return: $0-$10,000