Individual Retirement Accounts (IRAs)
Individual retirement accounts (IRAs) let you make tax-deferred investments that build financial security for your retirement years. Consumers should consult with a tax advisor for more information.
Ready to Open a Roth or Traditional IRA?
Request a ConsultationIRA Benefits
Easy To Set Up and Use
Log in and add money just like you would for your checking account.
Take Advantage of Taxes Now or Later
Choose the type of IRA that will save you money down the road.
Full Control of Your Account
Use automatic contributions so you can set it and forget it.
How an IRA Works
You may contribute up to $6,000 each year to an IRA. You can contribute the same amount for your spouse if one or both of you are working and getting paid. One of you must be earning wages and must be equal to or exceed your contribution.
If you are 50 or older by the end of your tax year, you may be eligible to make larger catch-up contributions.
| Tax Year | Contribution Limit | Catch-Up Limit* | Total Limit for Age 50+ |
|---|---|---|---|
| 2021 | $7,000 | $1,000 | $8,000 |
| 2022 or later | $7,000 + COLA* | $1,000 | $8,000 + COLA* |
* Subject to annual cost-of-living adjustments (COLAs), if any
** Contributions allowed in addition to basic annual contribution
Depending on your Adjusted Gross Income (AGI), you may be able to fund both a Roth and a Traditional IRA. You will want to check with your tax preparer to determine deductibility and if you are eligible to contribute to a Roth IRA.
Traditional IRA vs Roth IRA
The main difference between IRA types is how they are taxed. Often, both Traditional and Roth IRAs can be used at the same time. However, income limits may apply. Check with your tax preparer for information.
Traditional IRA:
You won’t pay taxes now, but any eligible withdrawals are taxed after you retire. This type is best if you expect to be in a lower tax bracket in retirement.
Roth IRA:
You pay tax on the contribution now, but any eligible withdrawals are tax-free after you retire. These are an excellent option if you expect to be in the same or higher tax bracket in retirement.
IRA Rollovers
If you are required to take a distribution from a qualified tax-deferred savings plan or pension, you can roll it over without paying taxes until you begin to receive payments or make withdrawals.
For example, if you leave your current job and want to move your 401(k) to a new account.
This is referred to as an IRA rollover. There is no limit to the amount of money that can be contributed to an IRA rollover as long as the funds are coming from a qualified plan.
IRA Calculators
- Which is better for me, a Traditional IRA or a Roth IRA?
- How much will my Traditional IRA be worth at retirement?
- How much will my Roth IRA be worth at retirement?
Use our Financial Calculators to answer your IRA questions.
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