An Individual Retirement Account (IRA) is a special savings plan authorized by the Federal government to help individuals accumulate funds for retirement.
- Minimum to open……..$1,000
- Fixed or Variable interest rate option
- Contributions may be partially or fully deductible, but distributions are generally taxable.
Who Can Contribute?
Anyone who has earned income or received alimony and falls within the Modified Adjusted Gross Income limits may contribute to an IRA. Income from other sources such as investments or inheritances does not qualify. Contributions may be made as long as you have earned income.
How Much Can I Contribute?
Each person may contribute $6,000 for 2020. Contribution deadline is April 15th of the following year.
Must I Contribute the Full Amount Each Year?
No. You can contribute any amount in one or more contributions throughout eligibility period up to $6,000.
“Catch-Up” Contributions For People 50 And Older
To make up for lost time, workers 50 and older before the end of the taxable year can make additional contributions above the new maximum limits of $1,000 per year.