• Traditional IRAs
• Roth IRAs
• Educational IRAs

TRADITIONAL IRAs

Eligibility

Anyone under age 70 ½ who has annual compensation or who files jointly with a spouse with earned income.

Contributions

Total of all IRA contributions cannot exceed $5,000 or 100% of annual compensation, whichever is less.

Additional catch-up contributions are available for ages 50 and above.

Tax Benefits

Certain contributions are tax deductible.

Withdrawals

• At or after age 59 ½ without penalty
• Must begin withdrawals at age 70 ½

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ROTH IRAs

Eligibility

Available to anyone, regardless of age, who has annual compensation, and qualifies for the individual's modified adjusted gross income (MAGI) levels, determined by his/her federal income tax return filing status.

Contributions

Total of all IRA contributions cannot exceed $5,000 or 100% of annual compensation, whichever is less.

Additional catch-up contributions are available for ages 50 and above.

Tax Benefits

Contributions are not tax deductible, but certain distributions are tax-free.

Withdrawals

• Withdrawals of contributory principal are always tax-free and IRS penalty free
• Interest distributions are tax-free for qualified withdrawals
• No withdrawals are required at age 70 ½

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EDUCATION IRAs

Eligibility

Each child under age 18 can have contributions made to a single account or multiple accounts designed to benefit the child. 

Contributions

Total of all after-tax contributions cannot exceed $2,000 per year.

Tax Benefits

Contributions and their subsequent earnings are tax-free when withdrawn to pay for a child’s education expenses.

Withdrawals

Tax-free withdrawals can be made for college, secondary and elementary school expenses.  These expenses include:

• Tuition
• Fees
• Books
• Academic tutoring
• Special needs services in the case of a special needs beneficiary
• Expenses for room and board, uniforms, and transportation

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