elderly couple dancing in the kitchen
A flexible, yet solid way to earn more on the money you don’t need to access every day.
Step up your savings with a Traditional or Roth IRA.
Why a Traditional IRA?
Your annual contributions may be tax deductible.1 Also, if you plan to be retired when you begin taking distributions, this is an excellent option as tax rates are based on your income level at time of withdrawal, because, for many, retirement income is lower than it was in peak earning years. IRS penalty-free withdrawals* may be made at any time for qualified college expenses or the purchase of a first home. Keep in mind, those distributions are considered taxable income. Maximum contribution limits apply.
You can start taking distributions without penalty at 59 ½, but you’re not required to take distributions until 70 ½.
1Please consult with a financial advisor regarding deductibility.
Why a Roth IRA?
With a Roth IRA, if certain distribution rules are met, earnings and withdrawals are tax-free. Contributions are not tax deductible though.
This IRA is an excellent choice. For 2018, single tax filers can contribute up to the maximum amount of $5,500 if their annual income is less than $120,000. Married couples, filing jointly can contribute up to the limit if their annual income is less than $189,000. Any workers over the age of 50 can add an extra $1,000 per year in “catch-up” contributions.
Contributions can be withdrawn at any time without IRS penalties or federal taxes, and you are not required to receive distributions at age 70 ½.
FCB IRA Details:
Please speak with a tax advisor to decide which IRA plan is right for you.