IRAs


An IRA (Individual Retirement Account) is an account set aside specifically for retirement. They all come with various features, as listed in the chart below.

According to federal law, you can contribute:

  • $5,500 a year per individual

  • $11,000 for couples filing jointly

  • $6,500 for investors over 50

  • $13,000 for couples, both over 50

Our current rate for IRAs is 0.65% APY**

IRA Comparison
Roth Traditional SEP
Eligibility
  • Account holder or spouse must have earned income
  • No age limits
  • Accountholder must have earned income
  • Maximum contributing age limit of 70 ½
  • Employer completes and signs written agreement by tax return date, providing a copy to the employee
  • Eligible employees open SEP at institution of choice
  • Employer determines contribution percentage
  • No age limit for contributions on behalf of employee
Maximum
Annual
Contribution
  • Lesser of annual IRS limit or amount based on account holder’s MAGI
  • Lesser of annual IRS limit or 100% of earned income
  • Cannot exceed 25% of employee’s income up to compensation cap
Distributions
  • Withdraw regular contributions tax and penalty-free at any time
  • May begin at age 59½ with no penalty; required to begin at age 70½
  • May begin at age 59½ with no penalty; required to begin at age 70½
Advantages
  • Contributions can be made at any age
  • Contributions can be withdrawn tax-free at any time
  • Earnings are tax-free for all qualified withdrawals
  • No required distributions after retirement
  • Possible tax deductible contributions
  • Earnings on contributions grow tax-deferred
  • May be converted to a Roth IRA pending certain criteria are met
  • Allows small businesses to provide pension coverage to employees at no administrative cost
  • Self-employed can provide for own retirement

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