Individual Retirement Accounts
Covenant Trust Company® serves as trustee for both Traditional IRA Accounts and Roth IRA Accounts.
You can open and fund a Traditional IRA with no employer participation. Contributions and earnings are tax-deferred until retirement. You can make contributions to the IRA as long as you are under age 70½, when you must begin taking annual distributions, which are included in your taxable income. There are some limitations on how much you can contribute annually.(1)
A ROTH IRA is funded with money on which you have already paid taxes. This means the principal amount is not taxable. Earnings are tax-deferred, and may become tax-free if you leave them in the account for at least 5 years and satisfy one of four qualifying events. Once you reach age 59½, you may begin taking qualified distributions from a Roth IRA. You may continue contributing even after age 70½ as long as you earn income equal to the amount you contribute. There are also limitations on the amount you can contribute each year.(1)
You can transfer the balance from another IRA account, or rollover funds from a Qualified Plan such as a 401(k) or 403(b) into a Covenant Trust Company IRA Account.(1) There is no minimum amount and no maximum amount for IRA Accounts at Covenant Trust Company.
It’s never too early to start planning for retirement! Visit Retirement Central™ for more information about IRA accounts, calculators that show how much you may need for retirement and whether you’re saving enough, plus other valuable tips and resources. You can also request more information through our contact page or give us a call. [view directory]
(1) Other conditions and limitations also apply. See your legal or tax advisor for information specific to your personal situation.