Individual Retirement Accounts

FDIC has raised the amount of insurance on IRA's to $250,000.00

An Individual Retirement Account (IRA) is an excellent tool for retirement savings. Depending on the type of IRA you choose, contributions may even be tax deductible. Your tax professional can help you determine the type most beneficial to you and if your contributions are tax deductible.

Traditional IRA*

If you are younger than age 70 for the entire tax year and you, or your spouse, have earned income, you are eligible to establish a traditional IRA*

Roth IRA*

For a ROTH IRA you, or your spouse, must have earned income, and your modified adjusted gross income (MAGI) cannot exceed certain prescribed limits.*

Making-Up for Lost Time

Catch-up contributions-For taxable years beginning in 2002, individuals who have reached age 50 by the end of the year will be able to make additional catch-up contributions of $500.00 per year to their traditional or Roth IRA. For taxable years beginning in 2006, the additional catch-up amount increases to $1000.00

*Other conditions may apply, please consult your tax advisor.