IRAS & IRA Rollover 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

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  Distributions are taxed when withdrawn, but since this occurs during retirement, you may often be in a lower tax bracket than before.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).

home equity

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.

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
2022: Single: Up to $129,000 Married filing jointly: Up to $204,000 Married filing separately: $0.

2021: Single: Up to $125,000 Married filing jointly: Up to $198,000 Married filing separately: $0.
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Contributions are always withdrawn tax-free.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
2022: $6,000 ($7,000 if you are 50 or older) or 100% of employment compensation, whichever is less.

2021: For 2021, the limits are the same as 2022.
2022: $6,000 ($7,000 if you are 50 or older) or 100% of employment compensation, whichever is less.

2021: For 2021, the limits are the same as 2022.
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
Friday, April 15, 2022 for the 2021 tax year.

Thursday, April 15, 2021 for the 2020 tax year.
Friday, April 15, 2022 for the 2021 tax year.

Thursday, April 15, 2021 for the 2020 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.

Contact The Summit Retirement & Investment Services

We’re here to help – please fill out the form with the best way to reach you; or if you prefer, contact us by phone at (800) 836-7328 extension 7230.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).  Insurance products are offered through LPL or its licensed affiliates. The Summit Federal Credit Union and The Summit Retirement and Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using The Summit Retirement and Investment Services, and may also be employees of The Summit Federal Credit Union.  These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, The  Summit Federal Credit Union or The Summit Retirement and Investment Services.  Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value

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