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The average American who retires at age 65 requires retirement savings of close to a million dollars. Will you be ready? First American Bank & Trust can help you save for retirement through an Individual Retirement Account (IRA). The sooner you begin to save, the easier retiring will be.
A traditional IRA is a personal savings plan that gives you tax advantages for saving for retirement. Contributions to a traditional IRA may be tax-deductible, either in whole or in part. The earnings on the amounts in your IRA, as well as your tax-deductible contributions, are not taxed until they are distributed.
- Tax-deferred earnings so you can grow your savings
- Tax deductions for IRA annual contributions (subject to eligibility criteria)
- No income limit, provided you are not participating in an employer-sponsored retirement plan
- Flexibility to convert to a Roth IRA
A Roth IRA is a personal savings plan that operates somewhat in reverse compared to a traditional IRA. For instance, contributions to a Roth IRA are not tax-deductible, while contributions to a traditional IRA may be deductible. However, while distributions (including earnings) from a traditional IRA may be included in income, the distributions (including earnings) from a Roth IRA are not included in income. For both IRA types - traditional and Roth - earnings that remain in the account are not taxed.
- Under current laws, tax-free investment earnings and tax-free income distributions start at age 59½ as long as you have had your Roth IRA account for at least five years.
- Contributions can continue past age 70½ if you're still earning income.
- Contributions can be withdrawn at any time with no tax penalties.
ELIGIBILITY AND CONTRIBUTION LIMITS:
- Contact us for more info
*Eligibility and contribution amount information is valid as of January 1, 2017.
First American Bank & Trust and its directors, officers, employees (collectively, "First American") are not permitted to give legal or tax advice. While First American can assist clients in the areas of estate and financial planning, only an attorney can draft legal documents, provide legal services and give legal advice. Customers of First American should consult with their legal and tax advisors prior to entering into any financial transaction or estate plan.