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General IRA Product Information
Coverdell Education Savings Accounts (CESA)
Traditional IRA
Roth IRA
IRA Comparison Chart
IRA Options for Your Retirement
IRA's available in the past were created to offer investors a way to reduce the amount of taxes they paid each year when they saved for their own retirement. IRAs also provided the taxpayer with an investment vehicle that allowed their retirement dollars to grow tax-deferred until retirement.
Today investing for your retirement has just gotten a little easier thanks to the passing of the Economic Growth and Tax Relief Reconciliation Act of 2001. This act liberalized guidelines for what is now called the Traditional IRA, an IRA that enables people to defer taxes on contributions until funds are withdrawn. Contributions to a Roth IRA are not tax-deductible, but earnings are free of federal taxes and IRS penalties if certain conditions are met.
Lake City Bank offers both types of IRAs, Traditional and Roth.
Expanded Income Limits of the Traditional IRA and Roth IRA
Income limits that allow you to deduct your IRA contribution from your income tax have been expanded for 2004, if both you and your spouse are covered by an Employee's Retirement Plan and your adjusted gross income (AGI) is:
- $65,000 or below, you may both make a fully deductible IRA contribution;
- $65,000 to $75,000, you are each entitled to a partial deduction;
- $75,000 or over, neither of you are allowed a deduction.
If neither you or your spouse are covered by an employee's retirement plan, you and your spouse can contribute $3,000 each regardless of your adjusted gross income.
*All information contained herein is intended to act as a guide in giving you an estimate of your allowable contribution limit. Contact your tax advisor for further information.
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