An Individual Retirement Account (IRA) is a tax-advantaged investing tool that individuals use to earmark funds for retirement savings.
A Roth IRA can be a great tool for reaching your retirement savings goals. Unlike a traditional IRA, there is no age requirement on when you need to start making withdraws from your account, this offers you the flexibility to allow your money to keep working, while earnings continue to grow tax-free, for as long as you like.
ROTH IRA Eligibility Modified Adjust Gross Income (MAGI) Thresholds
|Filing Status||Tax Year||Full Contribution||Partial Contribution||No Contribution|
|Single||2020||< $124,000||between $124,000 and $139,000||≥ $139,000|
|Married, Joint||2020||< $196,000||between $196,000 and $206,000||≥$206,000|
See IRS Publication 590 for more information on calculating Traditional IRA deductions.
A traditional IRA is a great choice for those looking for flexibility, thanks to our high income limits and penalty waivers. The Traditional IRA allows you to contribute up to $6,000 for tax years 2019 and 2020. If you are over 50, you can deposit an additional $1,000 as a catch up contribution. The contribution deadline is your income tax return filing due date, not including extensions.
Traditional IRA Eligibility MAGI Thresholds
|Filing Status||Tax Year||Full Deduction||Partial Deduction||No Deduction|
|Single||2020||≤ $65,000||more than $65,000 and less than $75,000||≥ $75,000|
|Married, Joint||2020||≤ $104,000||more than $104,000 and less than $124,000||≥$124,000|
See IRS Publication 590 for more information on calculating Traditional IRA deductions. So stop by or call us at 419-582-2681 for all the details about how you can stretch your retirement savings with IRAs.
IRAs offered through Osgood State Bank are FDIC insured up to $250,000.
Simplified Employee Pension (SEP)
A Simplified Employee Pension (SEP) plan is a retirement plan created especially for self-employed individuals and employees of small businesses. If you are self-employed, you can establish your own SEP and make tax-deductible contributions to it. If you work for a small business, your employer may establish a SEP and make contributions to it on your behalf. The account grows tax-deferred until you withdraw the money at retirement. The money that you or your employer contribute to the SEP IRA is vested immediately, meaning it’s yours to keep no matter what your length of employment. Contributions of up to 25% of your pay can be made (up to a maximum of $56,000 for 2019 and $57,000 for 2020).
Savings Incentive Match Plan for Employees (SIMPLE) IRA
If your employer offers a SIMPLE Retirement Plan, your contributions can be made to a SIMPLE IRA at Osgood State Bank. With a SIMPLE IRA, you make pre-tax contributions to your account, reducing your taxable income. The account grows tax-deferred until you withdraw the money at retirement. If you are eligible, your employer will also make a contribution into your account. The money that you and your employer contribute to the SIMPLE IRA is vested immediately, meaning it’s yours to keep no matter what your length of employment. The SIMPLE IRA allows you to contribute up to $13,000 for tax year 2019 and $13,500 for tax year 2020. If you are over 50, you can deposit an additional $3,000 as a catch up contribution. A SIMPLE IRA is a great way to save for a financially secure retirement.