IRA Investments

Roth IRA

Traditional IRAs

Traditional IRA's were created in 1974 by the government to encourage individuals to save toward their retirement. The benefits of a traditional IRA include tax-deferred earnings and, if an individual qualifies, tax deductibility.

Eligibility Requirements

To be eligible to contribute to a traditional IRA
There are two qualifications:

• An individual must have taxable earned income from employment.
• An individual cannot have reached age 70½ anytime during the year.

Contribution Limits

For the tax year 2011, the contribution limit for individuals under age 50 is 100% of earned income or $5,000 whichever is less. Married couples qualify for a maximum contribution of $5,000 to each spouse's IRA. There are special rules for contributions for a non-compensated spouse. Individuals age 50 or older can benefit from catch up contributions allowing you to invest an additional $1,000.

By choosing a tax-deferred investment, you keep your money at work throughout the life of the investment. There are many different investment opportunities available and our Investment Executives can help you decide which tax-deferred investments will best suit your financial needs.

Tax-advantaged investing can potentially help you reduce your short and long- term tax liability, keep more of your hard-earned income, and gain more control of your earnings.

Moving Employer Plan Assets

Qualified Retirement Plan (QRP) assets can generally be moved to a traditional IRA by rollover. The most popular method to move an employer plan to an IRA is by "direct rollover." This is a direct transaction between employer: plan and IRA custodian/trustee. This keeps the employer plan money tax-deferred.

401K-to IRA Rollovers & Transfers

Required Minimum Distributions

The IRS requires that at a certain age the IRA owner begin taking distributions from his/her IRA accounts. This age is 70½. The year the member turns 70½; he/she may no longer contribute to the IRA for the age 70½ year. The withdrawal amounts required to be taken are based on a specific formula. These amounts are called "Required Minimum Distributions" (RMDs).   (NOTE:  There are special RMD exceptions for 2009.)

To learn more about contributing to an IRA or rolling an employer sponsored plan to an IRA, contact one of our Investment Executives today at (866) 440-0391, ext. 3315. Consult your tax advisor for information concerning your particular circumstances.
 

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