IRAs

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Our retirement plans are ready to power your next adventure. 

Roth & Traditional IRAs

Roth IRA 

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 MAGI Thresholds

Filing Status Tax Year Full Contribution Partial Contribution No Contribution
Single 2017 < $118,000 between $118,000 and $133,000 ≥ $133,000
Married, Joint 2017 < $186,000 between $186,000 and $196,000 ≥$196,000
Married, Separate 2017 N/A <$10,000 ≥$10,000

See IRS Publication 590 for more information on calculating Traditional IRA deductions.

 

Traditional IRA – 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 $5,500 for tax year 2016 and tax year 2017. 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 2017 ≤ $62,000 more than $62,000 and less than $72,000 ≥ $72,000
Married, Joint 2017 ≤ $99,000 more than $99,000 and less than $119,000 ≥$119,000
Married, Separate 2017 N/A <$10,000 ≥$10,000

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 $53,000 for 2016 and $54,000 for 2017).

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 $12,500 in tax years 2016 and 2017. 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.

Coverdell Education Savings Accounts

Congress created the Coverdell Education Savings Account (CESA) to help families save for their children’s education expenses. CESA contributions are not tax deductible, but earnings are tax deferred and distributions for qualified education expenses are tax free. CESA accounts allow families to save for any postsecondary education by investing up to $2,000.00 a year per child, as long as the child is under age 18.

Anyone considering a CESA for a child should check IRS publication 970, Tax Benefits for Education, or consult with a financial planner or a tax or legal professional to determine the best program for a child’s education needs.

As the following chart shows, the Modified Adjusted Gross Income (MAGI) ranges determine full, partial and no contribution categories for an individual based on whether he/she files a joint federal income tax return.

 

CESA Contribution MAGI Thresholds

Filing Status Full Contribution Partial Contribution No Contribution
Joint Filers MAGI $190,000 or less MAGI between $190,000 and $220,000 MAGI $220,000 or more
All Other Individuals MAGI $95,000 or less MAGI between $95,000 and $110,000 MAGI $110,000 or more

Qualified expenses include tuition, fees, books, elementary and secondary school expenses, computer technology or equipment--even online access--that the beneficiary uses while in school, and equipment required for enrollment or attendance at nearly any postsecondary educational institution. Certain room and board expenses may also qualify.

All balances must be distributed within 30 days of the child reaching age 30; otherwise the parent may have to pay taxes on any earnings, plus an additional 10% penalty.