Individual Retirement Accounts
Many people use Individual Retirement Accounts (IRA) as part of their total financial plan. 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. [view the Fee Schedule for IRA Accounts]
Who can help me if I have questions about IRAs at Covenant Trust Company?
Your local Financial Services Representative........................[view Directory]
Christine Peterson (IRA Administrator)................................800-483-2177 or 847-583-3242
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.
[1] Other conditions and limitations also apply. See your legal or tax advisor for information specific to your personal situation.
Related Topics:
Brochures available in paper copy only [view
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- Traditional IRAs
- Roth IRAs
- Transfers and Rollovers
- Understanding Distributions
- Who Should be the Beneficiary of Your IRA?