About Eastwood

An IRA is an Important Tool in Your Toolbox

An IRA is an important tool to help you plan for a financially secure retirement. Compare and choose your IRA plan options from the chart below; then come to us and we’ll help you select the investment products you’re most comfortable with.

Roth IRATraditional IRA
Taxes
Contributions

Contributions are not tax deductible.

Contributions can be withdrawn at any time without taxes or penalties.1

Contributions are fully tax-deductible if neither you nor your spouse participates in a 401(k) or other employer-sponsored retirement plan, or if your Modified Adjusted Gross Income falls below certain limits.

Earnings and Qualified Withdrawals

Earnings and qualified withdrawals are tax-free.

Earnings may be withdrawn without taxes or penalties if you are age 59 ½ or older and your account has been open for the five-year holding period.

Exceptions to penalties may be made if funds are used for certain purposes, including first-time home purchase ($10,000 lifetime limit), higher education, certain medical expenses, etc.

All earnings and tax-deductible contributions grow tax deferred and are taxable upon withdrawal.

Penalties will be assessed if you make withdrawals before age 59 ½ or if withdrawals do not begin in the year you turn 70 ½.

Exceptions to penalties may be made if funds are used for certain purposes, including first-time home purchase ($10,000 lifetime limit), higher education, certain medical expenses, etc.

Contributions
Maximum annual contribution

For tax year 2012: up to $5,000; $6,000 for those age 50 and over. For 2013: up to $5,500; $6,500 for those ages 50 or over.

For tax year 2012: up to $5,000; $6,000 for those age 50 and over, For 2013: up to $5,500; $6,500 for those 50 and over.

Eligibility

You must have earned income. Ability to contribute is based on your income. If you earn too much to make a full contribution, you may be able to make a partial contribution.

You must have earned income. There are no income limits.

Contribution age limit

None

Up to age 70 ½

Distribution requirements

None

Required after age 70 ½

1 - For Traditional-to-Roth conversions, any converted amounts withdrawn within five years may be subject to taxes and penalties.