A Traditional IRA (An Individual Retirement Account other than a Roth IRA or SIMPLE IRA) is a special tax deferred savings plan authorized by the federal government to encourage you to accumulate money for retirement. Individuals who are under 70 ½ years of age for the entire tax year and who have earned compensation or have received alimony may contribute to a traditional IRA.
Roth IRA contributions are not tax deductible. But, distributions are tax and penalty free provided (1) the distribution is made after the 5-year taxable period beginning with the first taxable year in which a Roth contribution was made and (2) the distribution was made after the recipient has reached age 59 ½, is permanently disabled or is a beneficiary in the case of death. Also, the distribution can be tax and penalty free for first-time home buyer’s expenses, up to $10,000.00.
Contribution limits to both the Traditional and Roth IRA may be adjusted annually for inflation.
Individual Retirement Accounts are separately insured from any single, joint or revocable trust accounts you have on deposit at our institution for $250,000 by the FDIC.
Contact any of our new account representatives at Quail Creek Bank for further information!