IRAs - Individual Retirement Accounts Services

Save Smart for the Future

Take advantage of an excellent tax-advantaged way to help you work toward your retirement goals or supplement other retirement plans. LPL Financial can help you turn retirement dreams into reality!

Individual Retirement Accounts (IRAs) help you accumulate money to support yourself in your retirement years.

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Traditional IRA

Contributions to a traditional IRA may be tax deductible in the contribution year. Distributions are taxed when withdrawn, but since this occurs during retirement, you may often be in a lower tax bracket than before. Anyone under age 70½, regardless of earnings or tax filing status, can contribute to a traditional IRA. Starting at age 72, traditional IRAs are subject to a Required Minimum Distribution (RMD).

Roth IRA

Contributions to a Roth IRA are taxed and are subject to income limits, restricting how much you can contribute depending on your earnings and filing status. However, regardless of tax bracket or income level, your qualified withdrawals of earnings are tax-free. Roth IRAs are not subject to RMDs, allowing funds to continue growing for as long as you wish.

Differences between a Roth IRA and a Traditional IRA

	Roth IRA	Traditional IRA
Benefits	Tax-free growth – Tax-free qualified withdrawals	Tax-deferred growth – Contributions may be tax-deductible based on on Annual Gross Income and participation in an employer-sponsored retirement plan
Eligibility: Age	Any age with employment compensation	Under age 70½ with employment compensation
Eligibility: Income	2023: Single: $138,000 to $153,000 Married filing jointly: $218,000 to $228,000 Married filing separately: $0-$10,000 2022: Single: $129,000-$144,000 Married filing jointly: $204,000-$214,000 Married filing separately: $0-$10,000	No income limits to make contributions
Taxation at Withdrawal	Contributions are always withdrawn tax-free. Earnings are federally tax-free after the five-year aging requirement has been satisfied and certain conditions are met	Withdrawals of pre-tax contributions and any earnings are taxable when distributed
Penalties at Withdrawal	A non-qualified distribution is subject to taxation of earnings and a 10% additional tax unless an exception applies.	Withdrawals before 59½ may be subject to a 10% early withdrawal penalty unless an exception applies.
Required Minimum Distributions (RMDs)	Not subject to required minimum distributions during the lifetime of the original owner.	RMDs must begin at 72.
Maximum Contribution	2023: $6,500 ($7,500 if you are 50 or older) or 100% of employment compensation, whichever is less. 2022: $6,000 ($7,000 if you are 50 or older) or 100% of employment compensation, whichever is less.	2023: $6,500 ($7,500 if you are 50 or older) or 100% of employment compensation, whichever is less. 2022: $6,000 ($7,000 if you are 50 or older) or 100% of employment compensation, whichever is less.
Catch-up Contribution	Individuals age 50 or older (in the calendar year of their contribution) can contribute an additional $1,000 each year.	Individuals age 50 or older (in the calendar year of their contribution) can contribute an additional $1,000 each year.
Contribution Deadline	Monday, April 17, 2023 for the 2022 tax year. Friday, April 15, 2022 for the 2021 tax year.	Monday, April 17, 2023 for the 2022 tax year. Friday, April 15, 2022 for the 2021 tax year.
Minimum to Open	There is no minimum to open a Traditional IRA or Roth IRA.	There is no minimum to open a Traditional IRA or Roth IRA.

We also offer Rollover Services! Get in touch with the team below.

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