Traditional IRA's

Plan for your future with an Individual Retirement Account (IRA)

The Traditional IRA is a tax-deferred account until withdrawals are made. If you are under 70 1/2 for the entire tax year and have earned income, you are eligible to establish a Traditional IRA.

Who can Contribute?

• Anyone under age 70 1/2 who has income from compensation (or is filing jointly with a spouse who earns compensation).
• Anyone who has received a distribution from a qualified retirement plan and decides to move the proceeds of the plan into an IRA.

How much can I contribute? 

Contributions cannot exceed compensation.

Who can make deductible contributions?

Deductible up to the annual contribution limit:

• Single individuals not active in employer retirement plans
• Single individuals active in qualified retirement plans with *MAGI below defined limits
• Married couples with neither spouse active in an employer retirement plan
• Married individuals active in qualified retirement plans filing joint tax returns with MAGI below defined limits
• Married individuals not active in qualified retirement plans filing joint tax returns with spouses who are, as long as MAGI is below defined limits 

*MAGI - Modified Adjusted Gross Income. 

What are the tax advantages?

• Earnings grow tax-deferred until withdrawn
• Contributions may be tax-deductible 

When can you withdraw without restrictions?

• Qualified higher-education expenses
• First-time home purchases
• Age 59 1/2
• Disability
• Qualifying medical expenses exceeding 7.5% of adjusted gross income
• Payment to beneficiaries upon the owner's death
• Payment of health insurance premiums while unemployed for 12 weeks or longer

For more information about Traditional IRAs please contact a Member Service Representative, a Collins Wealth Management Group advisor, or First  Community Trust.

A transfer fee will be charged on all transfers out of the account as listed on the Fee Schedule. This fee may be waived for certain transfers.