A retirement plan and determination will take you where you want to go – traveling, golfing, or relaxing by the lake. Whatever you have in mind for your golden years, a Ouachita Valley individual retirement account (IRA) is a safe harbor for your retirement funds. There are now more IRA types and maturity options at Ouachita Valley than ever.
A traditional IRA allows your assets to grow tax-deferred, meaning you won’t pay any taxes on earnings until you withdraw the assets. For many investors, contributions to a Traditional IRA will also be tax-deductible.
Traditional IRA Key Features:
Must be under age 70 1/2 with earned compensation to start an IRA
Taxed deferred growth
Max contribution limits:
2018 - $5,500
Catch up contributions for workers 50+
2018 – $1,000
Possible tax deductible contributions
Earnings and deductible contributions subject to tax upon withdrawal
10% early withdrawal penalty if you are under 59 1/2, exceptions are:
Death of account owner
Part of a series of equal periodic payments
First time home buyer
Higher education expenses
Health insurance premium payments for unemployed individuals
Medical expense payments in excess of 7.5% of an individual AGI
Minimum required distribution must start at 70 ½
Your tax situation may vary. Consult with a tax advisor for full details on deductibility of contributions, earnings, and early withdrawal penalties.