IRA Accounts

Anyone 72 who earns compensation from employment (or who is filing jointly with a spouse who earns compensation). Contributions cannot exceed compensation.

If you are under age 50, your annual contribution limit is:
$7,000.00 for both Tax Years 2024 and 2025.

If you are age 50 and older, your annual contribution limit is:
$8,000.00 for both Tax Years 2024 and 2025.

Many people can deduct contributions on their tax returns. However, certain rules do apply.

In general, you must pay a 10% tax penalty on withdrawals before age 59½, but the early withdrawal tax does not apply in the following situations:

Withdrawal of up to $10,000.00 for a first-time home purchase.
Amount is used to pay for qualified post-secondary education expenses.
Distribution is for medical insurance premiums during unemployment that lasts 12 weeks or longer.
Distribution is to an owner who is disabled (as defined by the IRS code).
Amount is used to pay for medical expenses in excess of 10% of Adjusted Gross Income (AGI).
Payment is made to your beneficiaries after your death.
Payment of a federal tax levy.

Please consult a tax professional for a complete list of all exclusions.

You must begin receiving required minimum distributions from your Traditional IRA at age 72. The minimum distributions each year will be computed using an IRS formula.

You are allowed to delay the first year's payment until April 1st of the following year, but you will receive two years worth of payments in that year if you choose to delay.

Please consult a tax professional for an interpretation of current figures, information and how these rules apply to you.

Anyone who earns compensation from employment (or who is filing jointly with a spouse who earns compensation) with income less than or within the applicable IRS limits. Contributions cannot exceed compensation.

If you are under age 50, your annual contribution limit is:
$7,000.00 for both Tax Years 2024 and 2025.

If you are age 50 and older, your annual contribution limit is:
$8,000.00 for both Tax Years 2024 and 2025.

Note: Contributions to a Roth IRA are never tax-deductible.

You can withdraw regular contributions without paying income tax at any time.
There are two requirements to qualify for tax-free withdrawals of the income your Roth IRA has earned.
The Roth IRA must meet the Five-Year-Test. In other words, it must be five years after the first year for which Roth contributions were made.One of the following conditions must apply:

You are over age 59½.
Funds are going to your beneficiary upon your death.
You have become disabled.
You are using the funds for a first time home purchase (lifetime limit $10,000.00 per person).

Unless an exception applies, earnings distributed before age 59½ are subject to the 10% early distribution tax.

No. Unlike the Traditional IRA on the Roth IRA you are not required to receive minimum distributions at age 72. If you don't need the cash, you can let your money continue to grow tax-free for as long as you like.

Please consult a tax professional for an interpretation of current figures, information and how these rules apply to you.