Traditional & roth IRA plans

Grow your savings and tax-free retirement withdrawals

A Roth IRA (Individual Retirement Account) is a retirement savings account that allows you to pay taxes on the money you put into it up front.

TRADITIONAL & ROTH

2021 Contribution Limits

Max Annual IRA Contribution

$ 0

Max Annual Contribution and *Catch-up Contribution

$ 0
*Individuals who attain the age of 50 before the end of the taxable year are eligible.

Who is eligible?

Traditional IRA

Anyone under age 70 1/2 with earned income, regardless of income level. A non-working spouse may also contribute up to the maximum amount allowable, as stated above.

Roth IRA

The allowable contribution limit, as stated above, is phased out for individuals with adjusted gross incomes between $122,000 – $137,000 (single) and $193,000 – $203,000 (joint).

What are the tax advantages?

Financial organizations do not determine or track deductible contributions. The deductibility of an IRA contribution is determined by the IRA holder (and/or a competent tax advisor).

Traditional IRA

Tax-deferred investment growth. Income taxes not paid on deductible contributions and earnings until money is withdrawn. If the account is at least five years old and you are age 59 1/2. 

Roth IRA

After-tax contributions with potential for tax-free income in retirement. No required minimum distribution.

Is my contribution deductible?

The amount you can contribute is based on Modified Investment Income (MAGI) and participation in an employer retirement plan.

Is the IRA holder an active participant?

if no

Is the IRA holder married to an active participant?

if no

The deductibility of eligible contribution depends on MAGI



if yes

The deductibility of eligible contribution depends on MAGI

Is there an age limit for contributions?

Traditional

No

Roth IRA

No

What are the withdrawal rules?

Traditional

Withdrawals can be made penalty-free prior to age 59 1/2 to help pay for the purchase of a first home or for education (taxes apply to all earnings and all deductible contributions withdrawn).
Certain withdrawal amounts made prior to age 59 1/2 may be subject to an additional 10% penalty tax.

Roth IRA

Generally not taxed or penalized on withdrawals of contributions, or earnings, if the IRA Account is at least 5 years old and the participant is 59 1/2.
The earnings portion of the withdrawal may be subject to taxes and a 10% penalty if age and participation requirements are not met.

Are roll-overs and transfers permitted?

Traditional

You may transfer to and from other IRAs. You may roll over from employer plans (not-taxable).

Roth IRA

You may transfer to and from other Roth IRAs (non-taxable).

You may roll over from employer plans (taxable).

What is a Trustee-to-Trustee IRA Transfer?

Transfer your IRA Balances from one financial institution to another without triggering income tax consequences. PNA can help you with the process.

Is a Trustee-to-Trustee IRA Transfer Taxable?

When an IRA Balance is transferred directly from one trustee to another,
the transfer is tax-free because there is no distribution.

How Is Your Money Protected?