Traditional IRA
- Maximum annual contribution for 2009 is $10,000 for couples or $5,000 for singles. thereafter; increasing in inflation-adjusted yearly increments.
- Catch-up contributions for 50+ taxpayers - $1000 a year for 2009, making maximum contributions $6,000 for singles, $12,000 for couples
- May be fully or partially deductible based on participation in an employer-sponsored retirement plan and income levels.
- The earnings are sheltered from income tax until funds are withdrawn
- Funds withdrawn are considered taxable income for the year they are removed from the account
- Penalty free withdrawals are allowed if certain conditions are met
- Required Minimum Distributions (RMDs) or withdrawals must begin by age 70 1/2.
Current Rates
IRA
| Minimum Balance | Dividend Posting | Annual Percentage Yield | Dividend Rate |
|---|---|---|---|
| $50 - $24,999.99 | Monthly | 0.15% | 0.15% |
| $25,000 - $49,999.99 | Monthly | 0.40% | 0.40% |
| $50,000 and above | Monthly | 0.50% | 0.50% |
