Individual Retirement Accounts (IRA) create value for you to save for your retirement years.
Please call Valley Bank at 406-495-2400 for more information on Individual Retirement Accounts.
- Must have earned income and not reach age 70½ by end of year
- Annual IRA contributions: $4,000 in 2006 and 2007
- Annual limit applies to any combination of IRA plans other than the ESA
- Contributions are fully tax-deductible if you are not an active participant in an employer retirement plan
- Contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan, otherwise phase-out rules apply.
- Investments grow on a tax-deferred basis
- Earnings are taxed only upon withdrawal
- Opportunity for early withdrawal - Ask us about special circumstances
- Contribute to a Roth IRA even after age 70 ½, with earned income
- Contributions will not be tax deductible, but the contributions and earnings can be withdrawn tax-free.
- Same contribution limits as Traditional IRA listed above.
- No required minimum distributions after reaching age 70 ½.
- Convert your traditional IRA to a Roth IRA, to take withdrawals tax-free, but is subject to income tax now.
- Opportunity for early withdrawal - Ask us about special circumstances
- If you have reached age 50, make additional $1,000 catch-up contributions per year (up to a $5,000 maximum) to a Traditional or Roth IRA.
