Take charge of your future.
If you want to save for retirement, but aren’t quite sure where to start, don’t worry. We can help. An Individual Retirement Account (IRA) is one of the most powerful ways to save for your retirement. The Palmetto Bank offers both Traditional IRAs and Roth IRAs to fit your specific needs, especially if you need to rollover an old 401(k) from a previous employer.
|Traditional IRA1||Roth IRA2|
|Eligibility3||Any person with earned income who is under 701/2.A nonworking spouse under age 701/2 who files a joint return that includes earned income.||2013 Single filer with modified adjusted gross income (MAGI) of:
Joint filers with MAGI of:
Married, filing separately with MAGI of:
|Contribution Limits3||The most you can contribute to all of your
traditional and Roth IRAs is the smaller of:
|Are contributions deductible?||Contributions can be deducted if you qualify.||Contributions are not deductible.|
|Do I have to take required minimum distributions?3||You must start taking distributions by April 1 following the year in which you turn age 701/2 and by December 31 of later years.3||Not required if you are the original owner.3|
|Are my withdrawals and distributions taxable?3||Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 591/2 you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.3||None if it’s a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 591/2, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.3|
|Annual Maintenance Fee||$10.00||$10.00|
|Minimum Daily Balance to Avoid Maintenance Fee||N/A||N/A|
|Earns Interest||Yes, compounded quarterly||Yes, compounded quarterly|
|Learn More||Learn More|
For additional information about traditional and Roth IRA eligibility requirements, tax treatments, distributions and more, refer to IRS Publication 590, Individual Retirement Arrangements at www.irs.gov.
1 A Traditional IRA can be tax deductible or non-tax deductible, depending upon income eligibility requirements.
2 There is a single, 5-year holding period when determining whether earnings can be withdrawn federally tax-free as part of a qualified distribution from a Roth IRA. This period begins January 1 of the year of the first contribution to any Roth IRA account.
3 Consult your tax advisor.