Get tax incentives and grow your retirement income with an Individual Retirement Account (IRA).
- Earnings are tax-deferred until distributed.
- Contributions may be tax-deductible.
- Contributions can be made until the April 15* tax deadline.
The federal government sets the maximum contribution limits annually.
- 2014 Maximum Contribution: $5,500 or 100% of earned income per tax year, whichever is less.
- 2014 Maximum Contribution for IRA holders 50 years and older: $6,500.
- You must reduce your contribution by the amount contributed to a Roth IRA in the same year.
- Any individual younger than age 70½ who has compensation may be eligible to make a contribution.
- If an IRA owner fails to take the required minimum distribution (RMD) at age 70½, there is a 50% excess-accumulation tax on any required distribution amount not taken by the due date.
Financial planning can help you reach your retirement goals. At The First National Bank in Sioux Falls, our investment experts can help you to make the right choices about retirement accounts.
*If the 15th falls on a weekend or holiday, the deadline is the next business day.
The above information is provided for educational purposes and is not intended as tax advice. Please consult a tax professional.