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)

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

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 2010 tax year)

• $5,000 for single individuals up to age 50
• $6,000 for single individuals age 50 and over
• $10,000 - $12,000 for married couples filing jointly ($5,000 maximum for each joint filer up to age 50, $6,000 for each, age 50 and over)