Traditional IRAs

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 With a Traditional IRA, interest earned as income is not taxable until the funds are withdrawn.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.
YearAnnual Contribution Limit
2021$6,000
2022$6,000
Catch-Up Amount (Ages 50+)$1,000

IRA Eligibility MAGI Thresholds – Contribution Table

If you are: 2022 Modified Adjusted
Gross Income (MAGI) is		2021 Modified Adjusted
Gross Income (MAGI) is		Then
Single Individual- Less than $66,000
- $66,000 to $76,000
- Greater than $76,000		- Less than $65,000
- $65,000 to $75,000
- Greater than $75,000		- 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 $105,000
- $105,000 to $125,000
-Greater than $125,000		- Less than $104,000
- $104,000 to $124,000
- Greater than $124,000		- 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 $198,000
- $198,000 to $208,000
- Greater than $208,000		- Less than $196,000
- $196,000 to $206,000
- Greater than $206,000		- 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 72. 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.

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