Invest in Your Future with an Individual Retirement Account (IRA)

One of the key benefits to contributing to a Traditional IRA is the potential for a tax deduction up front. This option may make sense for you if you anticipate a higher tax rate while saving, anticipate a lower tax rate during retirement, are interested in taking the Required Minimum Distribution (RMD) amounts during retirement, or you are not concerned about tax savings for beneficiaries.

• Tax considerations: Contributions may be tax deductible; earnings are tax-deferred
• Eligibility: You (or your spouse if filing a joint tax return) must earn compensation from employment.
• Income limits: see IRS Publication 590 at irs.gov.
• Maximum yearly contribution: Up to $7,000 for 2025 and $7,500 for 2026 (plus $1,000 for 2025 if you are age 50 and older, and $1,100 for 2026). The contribution limit is subject to annual cost-of-living adjustments (COLAs)
• Starting with the 2020 tax year, you may make a contribution at any age.
• Contribution deadlines: You can contribute to your IRA until the due date for filing your federal income tax return for the year (for most individuals this is typically April 15th).
• Withdrawals: While you’ll get the most out of a Traditional IRA at retirement, you can withdraw the money anytime, subject to income tax. An IRS penalty tax also may apply unless you are age 59 1/2 or older.
• This information is not intended to provide tax advice. See a competent tax advisor to help you determine which type of IRA best suits your needs.

Unlike the Traditional IRA, contributions to a Roth IRA are never tax-deductible. But the money you contribute to your Roth IRA can be withdrawn tax-free at any time. And if you qualify, you can withdraw the earnings tax-free too. A Roth IRA may be more fitting if you anticipate a lower tax rate while saving, anticipate a higher tax rate during retirement, want to avoid RMDs, or you’re concerned about tax savings for beneficiaries.

• Tax considerations: Contributions are taxable and can be withdrawn tax and penalty-free at any time; earnings are tax-deferred; certain earnings withdrawals may be tax-free.
• Eligibility: No age limit to contribute; however, the owner must be earning income.
• Income limits: see IRS Publication 590 at irs.gov.
• Maximum yearly contribution: Up to $7,000 for 2025 and $7,500 for 2026  plus $1,000 for 2025 and $1,100 for 2026 if you are age 50 or older
• Contribution deadlines: You can contribute to your IRA until the due date for filing your federal income tax return for the year (for most individuals this is typically April 15th).
• Minimum Required Distributions (withdrawals): No withdrawal requirements.
• This information is not intended to provide tax advice. See a competent tax advisor to help you determine which type of IRA best suits your needs.

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