Traditional IRA
A traditional IRA can be a great way to save for retirement since potential earnings grow tax deferred, and your contributions may be tax deductible.*
- No age limits to contribute
- Income Limits
Amount you can contribute:
- Cannot exceed amount of yearly income household income if married and filing jointly
- Cannot exceed IRS limits - Can minors or nonworking spouses contribute?
Cornhusker bank does not offer youth IRAs. Nonworking spouses can contribute subject to household income restrictions. - Are there contribution limits?
- If you are under 50 you can contribute up to $6,500
- If you are over 50, you can contribute $7,500 - Can you claim contributions as a tax deduction?*
You may be able to claim all or part of your contributions.* - Are taxes paid on withdrawals?
You will pay income taxes on all distributions from a traditional IRA. - Is there a penalty on withdrawals taken before you turn 59½?
There is a 10% penalty tax on all withdrawals before the age of 59 ½. Exemptions available for specific situations and uses. - Are there any required minimum distributions?
You have to take the first RMD by the tax filing deadline of the year following the year you reach age 72. Every year after that you have to take the RMD by December 31.
*Consult a tax advisor for specific details and requirements.
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