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IRAs can be a good way for you to save for retirement. PremierBank offers five IRA options.
| IRA Type | Description | Tax Implications | Contribution Limits | Catch-Up Provisions |
|---|---|---|---|---|
IRA Type Traditional | Description A tax-deferred retirement account that allows your dividends, interest payments, and capital gains to compound without being hindered by taxes. | Tax Implications Taxes are paid only when you make withdrawals in retirement. | Contribution Limits $7,000 annually for people under 50. Full amount can be contributed each year, but it may be fully or only partially deductible based on your income. | Catch-Up Provisions $1,000 additional for people 50 and older for a total of $8,000 annually. |
IRA Type Roth | Description Contributions are made with money you have already paid taxes on. | Tax Implications Because taxes have already been paid, withdrawals are tax-free. | Contribution Limits $7,000 annually for people under 50. May be limited based on filing status and income. | Catch-Up Provisions $1,000 additional for people 50 and older for a total of $8,000 annually. |
IRA Type Rollover | Description A Traditional or Roth IRA for money that is transferred from an employer-sponsored plan, like a 401(k) or 403(b). | Tax Implications Taxes are paid only when you make withdrawals in retirement (excluding Roth IRAs). | Contribution Limits N/A* | Catch-Up Provisions N/A |
IRA Type SEP (Simplified Employee Pension) | Description A Traditional IRA for self-employed individuals or small business owners with one or more employees. Tax-deductible contributions are made by the employer, not the employee. | Tax Implications Taxes are paid only when you make withdrawals in retirement. | Contribution Limits Employers can contribute up to the lesser of 25% of compensation o $70,000. Self-employed individuals must use a special calculation to determine their contribution. | Catch-Up Provisions N/A |
IRA Type SIMPLE (Savings Incentive Match Plan for Employees) | Description For businesses with 100 employees
or fewer, this IRA allows employees
and employers to make tax-deductible contributions. Employers can choose to match employee contributions or contribute a fixed percentage of the employee's wages. | Tax Implications Taxes are paid only when you make withdrawals in retirement. | Contribution Limits $16,500 annually. | Catch-Up Provisions $3,500 additional for people 50 and older for a total of $20,000 annually. |
*Contributions can be made to Rollover IRAs—if made, it may not be possible to roll the account into a future employer’s plan.
IRAs are just one part of an overall investment strategy. If you’re looking for assistance with your broader investment portfolio, or just want to learn more, we’re here to help. We look forward to working with you, one-on-one, to help you achieve your dreams for the future.
Contact The PremierBank Wealth Management Team
Send us an email, or give us a call for more information.
Phone: (920) 563-6616 ext. 3070
You should always consult with your tax advisor before making any decisions. Not FDIC insured, not insured by any government agency, no bank guarantee, may lose value.