Traditional IRA

Features

• Available to individuals with earned income for the specific purpose of providing funds for retirement and reducing the tax burden while still employed
• Required minimum varies according to term and interest rate desired
• Contributions (deposits) may be deductible for the tax year in which they were made
• Interest is compounded daily for the term
• Account funds are reported as income when withdrawn
• Possible to contribute to an account for a non-working spouse
• Distributions are permitted after age 59-1/2 and a minimum distribution is required at age 70-1/2
• Any distribution prior to age 59-1/2 is subject to substantial penalty for early withdrawal and additionally may be subject to 10% Internal Revenue Service penalty
• No maintenance fee
• The Traditional Individual Retirement Account, along with other self-directed retirement accounts under the same name and at the same institution, is insured up to $250,000 by the Federal Deposit Insurance Corporation