Terms of Use The IRS uses MAGI to determine if any or all of your IRA contribution is deductible and if you are eligible for premium tax credits. The higher your MAGI, the fewer deductions you can take on IRA contributions. There is a maximum MAGI when if met, IRA deductions aren't allowed. While you can still contribute to an IRA, but you won't be able to deduct any of the contributions on your tax return. Adjusted Gross Income (AGI) AGI represents your taxable income. AGI is defined as  More...

Terms of Use One of the greatest benefits of a Roth IRA is the absence of Required Minimum Distributions (RMDs) during the owner's lifetime. Original Owner: No RMDs ever. Your funds can grow tax-free indefinitely. Workplace Roth Plans: As of 2026, Roth 401(k) and Roth 403(b) accounts also no longer require RMDs for the original owner. Inherited Roth IRAs: Most non-spouse beneficiaries must withdraw the total balance within 10 years of the owner's death, though these distributions a  More...

Terms of Use Roth IRA contributions are made with after-tax dollars. You can contribute to a Roth IRA if you have taxable compensation and your modified adjusted gross income (MAGI) is within certain limitations The maximum allowable contribution to a Roth IRA depends on whether contributions are made only to Roth IRAs or to both Traditional IRAs and Roth IRAs. Please see the IRS web site for more information.

Terms of Use IRAs are a great way for you to save for the future. Your IRA can consist of a range of investments from savings accounts, stocks, ETFs, bonds, and certificates of deposit or share certificates. You can contribute up to a certain limit each year into your IRA and if you're over 50, you are allowed an additional catch up contribution. The tax advantages of a Traditional or Roth IRA depend on your annual income and whether you are covered by your company's retirement plan.  More...

Terms of Use What Is a Traditional IRA? A Traditional IRA (Individual Retirement Account) is a tax-advantaged retirement savings account that lets you save money for retirement with tax-deferred growth . That means your investment earnings aren’t taxed as long as they remain in the account — you pay taxes when you withdraw funds in retirement. You can hold cash, stocks, bonds, mutual funds, ETFs, CDs, and other investments inside a Traditional IRA. The tax treatment of your contrib  More...

Terms of Use Yes, contributions to a Roth IRA may be withdrawn tax- and penalty-free at any time, for any reason. After the IRA has been established for five years, earnings on contributions may be withdrawn tax- and penalty-free, provided the owner meets any of the following specifications: has reached age 59½ has become permanently and totally disabled is deceased is withdrawing the funds for first-time home purchase First-time home purchase withdrawals are limited to a maximum wi  More...

Terms of Use Yes, you can convert a Traditional IRA to a Roth IRA. Taxpayers at any income level can convert a Traditional IRA to a Roth IRA. Previously deductible contributions to the converted IRA will need to be reported as taxable income, but the Roth IRA income is tax-free. Since there are some tax consequences, be sure to consult with your tax advisor.

Terms of Use Yes. If you contribute more than the allowed limit ($7,500 for those under 50; $8,600 for those 50+ in 2026), the IRS imposes a 6% excise tax on the excess amount for every year it remains in the account. How to Avoid the 6% Penalty To avoid the excise tax entirely, you must withdraw the excess contribution and any earnings (interest/gains) generated by that money by the due date of your tax return, including extensions (typically October 15 of the following year). Tax on Earnings  More...

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Terms of Use A rollover is when you withdraw funds from an IRA or plan, and you contribute those funds to the same or another IRA or plan. A trustee-to-trustee transfer (often called a direct transfer or direct rollover) is when you never receive the IRA or plan funds. They are transferred directly from one financial institution to another without you ever touching the money. The general rule is that when you take a distribution from an IRA (or other tax-deferred retirement account) that y  More...