Choosing the right IRA can be a difficult decision. Often a good place to start is by determining what options are available. See an S&C Banker or an S&C Investor Services Representative for IRA options and answers.
- Often, contributions are 100% tax deductible(reducing the tax you pay today)
- Earnings grow tax-deferred
- Distributions are generally taxable, but penalty-free if withdrawn under one of the following circumstances:
- Attaining age 59½
- Incurring a disability
- Qualifying medical expenses
- Qualifying first time home buyers expenses
- Taking equal periodic payments, or
- Death (payments to beneficiaries)
- IRS tax levy
- Qualified military reservist distributions
- Qualifying education expenses
- Health insurance expenses if receiving unemployment compensation (under certain conditions)
- Distributions are required to be taken by Traditional IRA holders beginning at age 70½
- Contributions are never deductible
- Earnings can grow tax-free
- Contributions can generally be distributed tax-free at any time (saving you taxes in the future)
- Earnings can be distributed tax-free if the Roth IRA holder first made a Roth IRA contribution at least five years ago AND one of the following events occurs:
- attaining age 59½,
- incurring a disability,
- purchasing a first home, or
- death (payments to beneficiaries)
- Distributions are not required to be taken by Roth IRA holders at age 70½
