Traditional IRA

Thinking about that day when you retire? Let Civic Bank help you start saving now for the future with a Traditional Individual Retirement Account (IRA)

Traditional IRA Features:

  • Contributions may be tax deductible
  • All earnings are tax deferred until a distribution is taken
  • You have until April 15th of each year to open and fund a Traditional IRA for prior tax year

Traditional IRA Eligibility Requirements

  • Individuals under the age of 70 1/2, during the year of contribution, having earned income

Withdrawals

  • Withdrawals made before the age of 59 1/2 are usually subject to a 10% IRS penalty
  • Certain withdrawals may be penalty-free, such as to help pay for a first-time home purchase or for higher education expenses.
  • A Required Minimum Distribution (RMD) begins after the age of 70 1/2
  • Maximum Annual Contributions Levels (for 2014 tax year)
  • $5,500 for single individuals up to age 50
  • $6,500 for single individuals age 50 and over
  • $11,000 – $13,000 for married couples filing jointly ($5,5000 maximum for each joint filer up to age 50, $6,500 for each, age 50 and over)