Retirement Savings Options

• Traditional IRA

  When saving for retirement, contributions to a Traditional IRA can help savings balances accumulate faster since future earnings reinvest on a tax-deferred basis.

  • For qualifying taxpayers, the contributions themselves may be tax-deductible in the year they are made*
  • Tax deferred contributions of earned income may be made up until the age of 70 ½
  • Contributions may be made up until April 15th for the previous year
  • Contribution limits vary from year to year, so check with your advisor regarding the current limit
  • Taxpayers who are at least 50 years old have the option of making additional “catch-up” contributions
  • Minimum distribution requirements take effect at age 70 ½
  • Withdrawals of tax-deferred funds after age 59 ½ are subject to treatment as ordinary income

  *Seek the counsel of a tax advisor before making a contribution to any retirement account to ensure it’s right for your circumstances.

• Roth IRA

  For those who would rather pay their taxes now rather than later, a Roth IRA offers an opportunity to contribute after-tax dollars today, so that balances may accumulate and grow tax-free until they are withdrawn.

  • Contributions are made with after-tax dollars, so there is no deduction for contributions made to these accounts
  • Upon withdrawal in retirement, distributions will occur free of federal taxes—if the account has been open at least 5 years and the account holder is at least 59 ½
  • There are no minimum distribution requirements
  • Contributions may still be allowable for those still working at or beyond age 70 ½

• Direct Rollover IRA

  When you move on, don’t leave your 401(k) savings behind. Roll it over to an Old Second Direct Rollover IRA account.

  • Avoid tax penalties by rolling funds directly into a Rollover IRA from your employer account or from an IRA you held at another financial institution
  • Access the same flexible investment options you have for new IRA contributions
  • Meet with a Wealth Management Advisor who can answer your questions and help streamline the process