The following are IRA (Individual Retirement Accounts) available at Southland:
Roth, Traditional, and SEP IRA Savings Accounts.
- Certificates (minimum deposit $1,000)
- Jumbo Certificates (minimum deposit $100,000)
- IRA Savings Account (minimum deposit $25)
Accumulate dividends on the money in your account with no taxes to pay until withdrawal. This lets you keep more of your dividend earnings to add to your account along with your annual tax-deductible contributions, increasing the amount you can earn over time for your retirement.
If you are covered by a retirement plan at work, your deduction for contribution to a traditional IRA will be reduced (phased out) if your modified adjusted gross income (AGI) is:
- More than $96,000 but less than $116,000 for a married couple filing a joint return or qualifying widow(er)
- More than $60,000 but less than $70,000 for a single individual or head of household
- Less than $10,000 for a married individual filing a separate return
Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, qualified distributions are tax-free (check with a professional tax adviser for list of qualified distributions). Contributions can be made to your Roth IRA after you reach age 70 ½ and you can leave amounts in your Roth IRA as long as you live.
Recent changes to adjusted gross income (AGI) limits:
Employer Provided IRAs
- $191,000 for married individual filing jointly or qualified widow(er),
- $10,000 for married individual filing separately and lived with their spouse at any time during the year, and
- $129,000 for single, head of household or married filing separately.
- Contributions are not tax deductible
- Tax free - penalty free distributions if used for a "qualified" reason
- No mandatory distributions
The Simplified Employee Pension Plan (SEP) allows an employer to provide retirement benefits to their employees. Under a SEP Plan, an employer would make contributions directly into the SEP-IRAs of each eligible employee. A SEP-IRA is a Traditional IRA established by an eligible employee for the purpose of receiving employer contributions under the SEP Plan. Employees may also contribute to their SEP-IRAs.