Looking for a tax-deferred retirement plan?

A Traditional IRA may be for you. With a Traditional IRA, interest earned as income is not taxable until the funds are withdrawn. Usually this occurs after retirement when the taxpayer is in a lower tax bracket.

  • Contributions to a traditional IRA can be tax deductible in the year they are made depending on the IRA, holder’s income level and participation in Employer Sponsored retirement plans.
  • Contributions can be made until your tax deadline, generally April 15, for a prior year contribution.
  • Contributions can be the lesser of the annual contribution limit or 100% of the earned income per participant and are allowed until the year in which the participant reaches the age of 70½.
YearAnnual Contribution Limit
2018$5,500
2019$6,000
Catch-Up Amount (Ages 50+)$1,000

IRA Eligibility MAGI Thresholds – Contribution Table

If you are: 2019 Modified Adjusted
Gross Income (MAGI) is
2018 Modified Adjusted
Gross Income (MAGI) is
Then
Single Individual- Less than $64,000
- $64,000 to $74,000
- Greater than $74,000
- Less than $63,000
- $63,000 to $73,000
- Greater than $73,000
- Contribution amount can be up to annual limit
- Contribution amount decreases as income increases
- Customer is not eligible to contribute
Married Individual
Filing Jointly
- Less than $103,000
- $103,000 to $123,000
-Greater than $123,000
- Less than $101,000
- $101,000 to $121,000
- Greater than $121,000
- Contribution amount can be up to annual limit
- Contribution amount decreases as income increases
- Customer is not eligible to contribute
Married, Joint
(non active participant but spouse is)
- Less than $193,000
- $193,000 to $203,000
- Greater than $203,000
- Less than $189 ,000
- $189,000 to $199,000
- Greater than $199,000
- Contribution amount can be up to annual limit
- Contribution amount decreases as income increases
- Customer is not eligible to contribute
Married Filing SeparateN/A
< $10,000
>= $10,000
N/A
< $10,000
>=$10,000

- Contribution amount can be up to annual limit
- Contribution amount decreases as income increases
- Customer is not eligible to contribute
  • Generally, Traditional IRA account holders are taxed on contributions plus all earnings the year the distributions are taken.
  • The Traditional IRA account holder is required to begin taking distributions in the year in which they reach age 70½. Individuals can begin to withdraw without IRS penalty at age 59½.
  • Individuals who reach age 50 or older before the end of the taxable year may be eligible to contribute an additional $1,000 to a Traditional IRA as a “catch-up” contribution.