Traditional and Roth Individual Retirement Accounts (IRAs)

You should consider a Traditional or Roth Individual Retirement Account (IRA) even if you already contribute to an employer-sponsored plan. These accounts allow you to save for specific retirement goals and provide long-term, tax-advantaged savings opportunities to help you make the most of your financial future.

The information provided below is not intented as tax advice; please consult a tax professional.  For more infomration regarding LorMet IRAs, 401K Rollovers, contact a Member Service Representative at 440-960-6600. 

	Traditional IRA	Roth IRA
Who May Contribute?	Anyone under age 70 1/2 (for the entire tax year) with earned income from compensation may contribute.	Your eligibility to contribute and how much you can contribute is based on your tax filing status and your modified adjusted gross income.
What is the Minimum Opening Deposit?	$25 for 18 month variable $500 for all other IRA terms	$500 for all IRA terms
How Much May I Contribute for 2011  and 2012?	If you qualify, you are permitted to annually contribute the following maximum amounts, or 100% of your earned compensation and alimony, whichever is less.   Maximum Contribution Limits: $5,000 per tax year, under age 50   $6,000 per tax year, age 50 or older	If you qualify, you are permitted to annually contribute the following maximum amounts, or 100% of your earned compensation and alimony, whichever is less. Maximum Contribution Limits: $5,000 per tax year, under age 50 $6,000 per tax year, age 50 or older
What Are the Tax Advantages?	Earnings compound tax deferred until withdrawn. Earnings are then taxed when withdrawn, usually during retirement when your taxable income may be lower. Contributions may be tax-deductible if certain requirements are met.	Earnings are tax-free if the account is open for five years and withdrawn for a qualified reason. You are not required to start withdrawals at age 70½. Contributions may be withdrawn tax-free and IRS penalty-free anytime.
When May Withdrawals Be Taken Without Penalty?	You may withdraw without incurring a 10% IRS premature-distribution penalty: 1. Upon reaching age 59½ 2. For qualified educational expenses 3. For a first-time home purchase (lifetime maximum of $10,000 per individual) 4. Upon disability 5. For catastrophic medical expenses 6. For eligible medical insurance payments Withdrawal of any earnings and deductible contributions still result in taxable income.	Contributions may be withdrawn tax-free and IRS penalty-free anytime. Earnings may be withdrawn tax-free and IRS penalty-free for any of the following qualified reasons after the account has been open for five years or longer: 1. After owner reaches age 59½ 2. Upon disability 3. Upon death 4. For a first-time home purchase (lifetime maximum of $10,000 per individual)
When Must Required Distributions Begin?	Distributions are required at age 70½.	Distributions are not required.