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Individual Retirement Accounts (IRA)

Consider our Traditional or Roth Individual Retirement Accounts (IRAs) even if you already contribute to an employer-sponsored plan. These IRA accounts allow you to save for retirement and provide long-term, tax-advantaged savings opportunities to help you make the most of your financial future.

 


Contribution Amount

 

If you qualify, you are permitted to annually contribute the following maximum amounts, or 100% of your earned compensation and alimony, whichever is less.

Under 50Age 50+
2020$6,000$7,000
2019$6,000$7,000

You have until April 15 of the current year to make contributions for the previous year. For example, for 2019 IRA contributions, you could have contributed at any time during 2019 and up until April 15, 2020.

 


Traditional IRA

 

Who May Contribute?Anyone with earned income from compensation may contribute.
Minimum Opening Deposit$25 for 18 month variable.
$500 for all other IRA terms.
Tax AdvantagesEarnings compound tax deferred until withdrawn. Earnings are then taxed when withdrawn, usually during retirement when your taxable income may be lower.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.
When Must Required Distributions Begin?If born on July 1st, 1949 or after, required distribution age is 72.

 


Roth IRA

 

Who 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.
Minimum Opening Deposit$500 for all IRA terms.
Tax AdvantagesEarnings are tax-free if the account is open for five years and withdrawn for a qualified reason.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 a specific age. Contributions may be withdrawn tax-free and IRS penalty-free anytime.
When Must Required Distributions Begin?Distributions are not required.

 


 

The information provided above is not intended as tax advice; please consult a tax professional to determine when tax withdrawals may be taken without penalty.

For more information regarding LorMet IRAs and 401(k) Rollovers, contact a Member Service Representative at 440-960-6600.