An Individual Retirement Account can provide a strong foundation to help you build toward your financial future. Let The First National Bank of Bangor help you with your IRA rollovers and transfers too!
| Traditional IRA | Roth IRA | ||
|---|---|---|---|
| Eligibility Requirements | Minimum Age | No IRS minimum age restriction | No IRS minimum age restriction |
| Maximum Age | Year prior to turning 73 years of age except wtith earned income | No maximum age restriction | |
| Income | You or your spouse must have earned income | You or your spouse must have earned income | |
| Contributions | Deductibility | May receive tax deduction | No tax deduction |
| Maximum Contribution | $7,000 plus an additional $1,000 if 50 years of age or older by end of calendar year | $7,000 plus an additional $1,000 if 50 years of age or older by end of calendar year | |
| Deadline | Tax filing deadline, no extensions | Tax filing deadline, no extensions | |
| Distributions | Before Age 59.5 | 10% early distribution penalty unless exception applies. Taxed as ordinary income | 10% early distribution penalty generally applies to nonqualified distributions of earnings unless exception applies |
| Annual Required Minimum Distribution (RMD) | RMD mandatory beginning April 1, following the year in which you become 73 years of age. Taxed as ordinary income | No RMD | |
| Qualified | Taxed as ordinary income, no penalty applies | Tax-free distribution for certain situations after a 5 year mandatory waiting period | |
| Nonqualified | 10% early distribution penalty unless exception applies. Taxed as ordinary income | Earnings are taxed and generally subject to a 10% penalty unless exception applies |