Individual Retirement Account (IRA)

//Individual Retirement Account (IRA)
Individual Retirement Account (IRA)

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 70.5 years of age 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 $5,500 plus an additional $1,000 if 50 years of age or older by end of calendar year $5,500 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 70.5 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

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