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
Max Annual Contribution and *Catch-up Contribution
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 Income taxes not paid on deductible contributions and earnings until money is withdrawn.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pay for the purchase of a first home or for education (taxes apply to all earnings and all deductible contributions withdrawn).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?
- The PNA is supervised by various Insurance Departments within the states it operates.
- PNA is on the legal reserve system and is audited annually by an independent CPA firm.