What's on your financial to-do list – Save for retirement? Trim taxes?
Kill two birds with one stone by contributing to an individual retirement account (IRA). Both traditional IRAs and Roth IRAs offer tax benefits that can help your savings grow faster, and you'll pay less in current taxes because earnings accumulate tax-deferred.* In addition, contributions to a traditional IRA may be tax-deductible, depending on your income and participation in an employer's retirement plan. See your tax advisor for details.
For 2012, you can contribute up to $5,000 to any combination of traditional and Roth IRAs.** If you're age 50 or older, you may make an additional $1,000 "catch-up" contribution. You have until April 15, 2013, to make a contribution for the 2012 tax year. Contributions for 2013 can be made from Jan. 1, 2013, through April 15, 2014.
To open an IRA, contact a CornerBank representative today or go to www.cornerbank.com/personal/trustandinvestments_ira.asp.
* Taxes will be due upon withdrawal in retirement from a traditional IRA. Withdrawals from a Roth IRA may be tax-free if certain conditions are met. Premature withdrawals from either type of account will be subject to ordinary income taxes and a 10 percent tax penalty.
** This amount may be adjusted for inflation in future years.