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Traditional IRAFeatures
- Earnings on account are tax-deferred
- Contributions may be tax deductible1
Contributions
- You must have earned income to make a contribution
- Contributions are 100% of earned income or based upon the following table, whichever is less
- Customers who are age 50 or over may make Catch-Up Contributions
- Contributions for the previous tax year may be made up to April 15th of the current year
|
Tax Year |
Standard Limit |
Additional Catch-Up Contribution Limit |
Total Contribution Limit for Age 50 or Over |
| 2006 – 2007 |
$4,000 |
$1,000 |
$5,000 |
| 2008 |
$5,000 |
$1,000 |
$6,000 |
| 2009 and after |
$5,000 + COLA2 |
$1,000 |
$5,000 + COLA2 + $1,000 |
Rollovers and Transfers
- Funds from other qualified retirement plans may be rolled over into a Traditional IRA
- Funds from Traditional IRAs at other institutions may be transferred or rolled over into Traditional IRA at First Federal Savings Bank.
Distributions
- Distributions taken prior to the IRA owner reaching age 59 ½ are generally subject to a 10 percent IRS penalty.
- IRA owners reaching a 70 ½ are required to begin taking minimum distributions based upon their life expectancy.
1 Please consult your tax advisor as to the deductibility of your contribution.
2 Cost-of-living adjustments (COLA)
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