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Investing

Individual Retirement Accounts (IRAs)

Achieve Your Dreams, Today and Tomorrow

Retirement should be something you look forward to. After all, you’ve earned it!

With an Individual Retirement Account (IRA), you can reach your fantastic future faster. Adding a Ripco IRA to your retirement plan can offer certain tax advantages. The two most common accounts are the Traditional IRA and Roth IRAs. Each offers different benefits:

Traditional vs. Roth IRAs

Comparison table of Traditional IRA and Roth IRAs.
  Roth IRA Traditional IRA
Contributions Not tax-deductible

Tax-deductible (subject to certain limitations)

Earnings

Tax-free (subject to certain limitations)

Taxes deferred until you begin withdrawing funds
Withdrawals

Tax-free withdrawal of original contribution; potentially tax-free withdrawal of earnings if part of a qualified withdrawal

Taxable
Maximum Contributions (2019)

Up to $6,000.00 for those under 50; $7,000.00 for those 50 and older

Up to $6,000.00 for those under 50; $7,000.00 for those 50 and older

Eligiblity
  • No age restrictions
  • Must have earned income
  • Certain Modified Adjusted Gross Income (MAGI) requirements must be met
Anyone with earned income may contribute up to age 70½
Tax/penalty Consequences
  • Contributions can be withdrawn anytime without taxes or penalties
  • Earnings can be withdrawn without taxes or penalties if you are 59½ and your account has been open five years or more
  • All earnings and deductible contributions are taxable upon withdrawal
  • Penalties will be assessed if withdrawals are taken before age 59½ or if withdrawals are not taken by 70½ 
Distribution Requirements None Required minimum distributions upon reaching age 70½
Exceptions to Penalties

Some exceptions are made if funds are used for a first-time home purchase, education or certain medical expenses

Some exceptions are made if funds are used for a first-time home purchase, education or certain medical expenses

Retirement Calculator

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