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Individual Retirement Accounts

Tools for your financial management

Traditional IRA

Individual retirement accounts allow tax-deferred saving for retirement. The traditional IRA is an account which allows you to defer taxes on your earnings until they are withdrawn.

  • Tax benefits
    • Defer taxes on your earnings until they are withdrawn
    • Certain contributions are tax deductible in the tax year for which they are made
  • Eligibility to establish
    • Must be under age 70 ½ for the entire tax year and have earned income (or your spouse has earned income)
  • 2013 Contributions
    • $5,500 or up to 100% of your compensation, whichever is less
    • $5,500 is the aggregate amount you can contribute to any IRA in a given year
    • Earned income is required to open an IRA
    • Non-income-earning spouse of income earners can open individual IRAs
    • If you are age 50 or older, you can make an additional “catch up” contribution
      of $1,000.
  • Withdrawals
    • Must take minimum required withdrawals at age 70 ½ or severe penalties will be imposed
    • 10% IRS premature distribution penalty for non-qualified distributions
    • Qualified distributions
      • Distributions made on or after the date you reach age 59 ½
      • Distributions made to your beneficiary or your estate upon your death
      • Distributions if you become disabled
      • Distributions for qualified first-time home buyers (up to $10,000)
      • Distributions for medical expenses in excess of 7.5% of your adjusted gross income
      • Distributions for health care insurance if you’ve been receiving unemployment compensation for at least 12 weeks
      • Distributions are for higher education expenses
Securities and insurance products are:
  • Not insured by the Federal Deposit Insurance Corporation (FDIC), any government agency, or any other deposit insurance program, including, without limitation, SAIF or BIF.
  • Not deposits with, obligations of, or guaranteed by CornerBank, N.A.
  • Subject to investment risk, including possible loss of the principal amount invested.
Securities and annuities are offered by Cetera Investment Services LLC, an independent, registered broker/dealer. Member SIPC.

For information about Cetera IRA options, click here for a list of contacts.

Roth IRA

Individual retirement accounts allow tax-deferred saving for retirement. The Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period.

  • Tax benefits
    • Non-deductible account
    • Tax-free withdrawals after a 5-year period
  • Eligibility
    • Must have earned income (or your spouse must have earned income)
    • Modified adjusted gross income cannot exceed certain limits. See contributions below
  • 2013 Contributions
    • Modified Adjusted Gross Income levels
      • Single filers
        • $112,000 or less: Full $5,000 contribution
        • Between $112,000 and $127,000: Partial contribution
        • $127,000 or more: No contribution
      • Married, joint filers
        • $178,000 or less: Full $5,000 contribution
        • Between $178,000 and $188,000: Partial contribution
        • $188,000 or more: No contribution
    • $5,500 is the aggregate amount you can contribute to any IRA in a given year
    • If you are age 50 or older, you can make an additional “catch up” contribution of $1,000.
  • Withdrawals
    • No minimum required withdrawals
    • Must meet five-year holding period, which begins with the tax year for which the first contribution is made
    • After holding period, withdrawals for qualified distributions are tax tree and IRA penalty free
    • Qualified distributions
      • Distributions made on or after the date you reach age 59 ½
      • Distributions made to your beneficiary or your estate upon your death
      • Distributions if you become disabled
      • Distributions for qualified first-time home buyers (up to $10,000)
    • The 10% penalty for early withdrawal is waived for the following distributions, but for these distributions, taxes on any earnings will apply
      • Distributions for substantially equal periodic payments
      • Distributions for eligible medical expenses in excess of 7.5% of your adjusted gross income
      • Distributions for medical insurance premiums for eligible unemployed individuals
      • Distributions for qualified education expenses
      • Distributions taken within the first five years for any of the following
        • Age 59 ½
        • Death
        • Disability
        • First-time home purchase
        • Distributions taken for any reason other than a qualified reason or one of the reasons listed here are subject to both taxes and a 10% IRS penalty on any earnings withdrawn
Securities and insurance products are:
  • Not insured by the Federal Deposit Insurance Corporation (FDIC), any government agency, or any other deposit insurance program, including, without limitation, SAIF or BIF.
  • Not deposits with, obligations of, or guaranteed by CornerBank, N.A.
  • Subject to investment risk, including possible loss of the principal amount invested.
Securities and annuities are offered by Cetera Investment Services LLC, an independent, registered broker/dealer. Member SIPC.

For information about Cetera IRA options, click here for a list of contacts.

Rollover IRA

Individual retirement accounts allow tax-deferred saving for retirement. CornerBank can help you decide if the Rollover IRA is right for you.

Rollover retirement plans from a previous employer into either a Roth or Traditional IRA. Contact us for assistance in rolling over your retirement funds.

Securities and insurance products are:
  • Not insured by the Federal Deposit Insurance Corporation (FDIC), any government agency, or any other deposit insurance program, including, without limitation, SAIF or BIF.
  • Not deposits with, obligations of, or guaranteed by CornerBank, N.A.
  • Subject to investment risk, including possible loss of the principal amount invested.
Securities and annuities are offered by Cetera Investment Services LLC, an independent, registered broker/dealer. Member SIPC.

For information about Cetera IRA options, click here for a list of contacts.

For information about CornerBank IRA options, click here for a list of contacts.

Mark Taylor

Vice President,
Human Resources
and Marketing

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