Retirement Account
Pursue your goals your way
A retirement account (Roth IRA, Simple IRA and Rollover IRA) generally has a minimum initial deposit of $1,000.
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Traditional IRA |
A Traditional IRA (also called a Contributory IRA) can be established by an individual to save money for retirement. Up to $5,000 a year (for 2009) of tax-deferred earned income can be placed in an IRA until the account owner turns 70½ years old. An individual can also contribute an additional $5,000 a year of earned income to a separate IRA for a non-income-earning spouse. Account owners who are age 50 or over are allowed to contribute an additional $1,000. Taxable distributions from an IRA can be taken without penalty starting at age 59½, and must be started by April 1 after the individual has reached 70½ years of age.
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Roth IRA |
A Roth IRA is similar to a Traditional IRA. However, while contributions to a Traditional IRA may be tax-deductible and withdrawals are taxed, contributions to a Roth IRA are taxed, but qualified withdrawals are federal tax-free. After a Roth IRA has been in existence for five years, withdrawals are not taxable if, 1) the account owner turns 59½ years old, 2) the withdrawal (up to $10,000) is used for the first-time purchase of a home, 3) the account owner is disabled or 4) the account owner is deceased.
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Rollover IRA |
A Rollover IRA is designed as a holding account for funds distributed from an employer's qualified retirement plan, such as a 401(k) or 403(b). Moving funds into a Rollover IRA allows the account owner to return the funds to another qualified retirement plan in the future. To start a direct rollover from a qualified retirement plan, please contact your plan administrator.
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Simplified Employee Pension (SEP) Plan |
A SEP IRA is for self-employed individuals and for use by small companies for qualified employees. In 2009, SEP IRA contributions are limited to 25% of the individual's compensation (with compensation being capped at $230,000) or $49,000, whichever is less.
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| Savings Incentive Match Plan for Employees (SIMPLE) IRA |
A SIMPLE IRA is an employer-operated savings plan that features employee tax-deferred contributions and matching contributions by the employer. Employers with 100 or fewer eligible employees who do not maintain another retirement plan are eligible to establish a SIMPLE IRA. The employer and employee make contributions, which are limited to annual contributions of $11,500 in employee-elected deferrals and $11,500 in employer contributions. Employees who are 50 years of age or older may be allowed an additional $2,500 contribution in 2009. |
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