IRA FAQs

Frequently Asked Questions about IRAs

Traditional IRA

Who is eligible?
You can start contributing if you are under the age of 70-1/2 for the year that the contribution is being made and you have earned income from employment equal to or greater than your IRA contribution.

How much can I contribute?
The annual contribution limit for individuals is $5,500 ($6,500 for ages 50 and above) or 100% of earned income, whichever is less. 

What are the withdrawal requirements?
Distributions from an IRA must begin in the year that an IRA holder turns 70-1/2 years.

Roth IRA

Who is eligible?
Unlike the Traditional IRA, there is no 70-1/2 age limit on making contributions. You simply need to have earned income equal to or greater than the amount you contribute up to a maximum amount set each year.

How much can I contribute?
The annual contribution limit for individuals is $5,500 ($6,500 for ages 50 and above) or 100% of earned income, whichever is less. 

What are the withdrawal requirements?
There are no required minimum distributions.

Roth IRA tax deductibility
Contributions are not tax-deductible. Please consult your tax advisor.

You can visit irs.gov for more information about IRAs.

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