Looking to save for retirement and obtain a tax deduction? If so, an Individual Retirement Account (IRA) may be right for you. Money that is invested in an IRA earns interest tax-deferred (for regular IRA CDs) or tax-free (for Roth IRA CDs.) The more money that you can afford to invest this way, the more money you’ll have for your retirement. Just a reminder, your IRA with us is federally insured separately from your other deposits.
We can open an IRA CD with as little as $50! All you need is earned income.
If you need a 2013 tax-deduction and you are eligible, you have until April 15, 2014, to open or add to your IRA account. Just make sure you state that “you want the deduction taken for the 2013 tax year.”
Education IRAs have become more attractive during the past few years. The annual contribution limit is $2,000 per year per beneficiary (that is the IRA term for child.) This is more tax-free money to be used for a variety of educational expenses.
What are the Individual Retirement Account (IRA) contribution limits?
For 2013 Taxes (up until April 15th, 2014): The 2013 IRA contribution limit for someone who qualifies with earned income is $5,500 under age 50. For those over 50, the limit is $6,500 with earned income. The minimum amount to open an IRA at Bath State Bank is $50.
For 2014 Taxes: Likewise, the amounts are the same for the 2014 year.
The IRS has specific rules regarding who can contribute to an IRA. Traditional IRAs and Roth IRAs base certain eligibility guidelines on the taxpayer’s Modified Adjusted Gross Income (MAGI), which is calculated when you file your taxes.