If you're under age 70 ½ with earned income, you are eligible to make a contribution to a traditional IRA, regardless of your current income.
Traditional IRAs offer the following advantages:
- Tax deferral - your investment earnings compound tax-free year after year.
- Flexibility - you may invest your traditional IRA assets in a variety of ways including a certificate of deposit (CD) or savings accounts offered through our bank.
- Tax deduction - your contributions are tax deductible if you are not an active participant in an employer sponsored plan or if your modified adjusted gross income is below a certain threshold.
IRA holders who are 50 or older by the end of the year can contribute an amount in excess of their annual contribution into a roth or traditional IRA as follows:
- 2012: $1,000.00
- 2013: $1,000.00
The above information is provided for educational purposes and is not intended as tax advice. Please consult a tax professional.