couple walking - Traditional IRA

Traditional IRA

Contributions are tax-deferred. If you expect your tax rate during retirement to be lower than it is today or if you want to reduce taxable income now, this option may be a better fit for you.

Account Summary

  • Contribute $7,000 if you're under age 50 / $8,000 if you're age 50 or older1
  • Contributions may be tax-deductible if you meet certain conditions1
  • Withdraw funds without penalty beginning at age 59½. Withdraw before 59½ at 10 percent penalty (plus possible bank fees), with certain exceptions1
  • Distributions must begin by April 1st of the year following the year you reach age 732
  • Anyone who has earned income is eligible2
  • Traditional IRAs can generally be converted to Roth IRAs, although tax consequences may apply1

Roth IRA

Contributions are made after you are taxed, so you won't pay taxes when making qualified distributions. If you expect to have a higher tax rate at retirement, this option may be a better fit for you.

Account Summary

  • Contribute $7,000 if you're under age 50 / $8,000 if you're age 50 or older1
  • Contributions are not tax-deductible1
  • Funds can be withdrawn without penalty once you reach the age of 59½, or before that subject to a 10 percent penalty unless exceptions apply1
  • No requirement to take a minimum distribution at age 732
  • Anyone with earned income is eligible
  • Roth IRAs cannot be converted to Traditional IRAs1
Couple walking in market - Roth IRA

IRA Rates

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1 Certain qualifications and exceptions apply. Consult your tax advisor for more information.

2 Effective for customers turning 72 after December 31. 2022.