What tax rules do IRA accounts have?
Roth IRAs and Traditional IRAs are designed to help us save for our retirement, but both have specific rules. Below is a table of the most commonly asked questions customers have about their IRAs. That said, IRS Rules regularly change, so you can also check out the IRS Retirement FAQ site by clicking here.
|Roth IRA||Traditional IRA|
$6,000 ($7,000 if you’re age 50 or older). Contributions cannot be made after the age of 70½.
|Minimum Distribution Age|
|Age 59½ Rule||Withdrawals before age 59½ are subject to a 10% tax plus any tax associated with your gross income.|
|Required Minimum Distribution Age|
Withdrawals are not required until after the death of the owner.
April 1st following the year you reach 70½ or 72*
|Required Minimum Distribution Amount|
Varies by age
* On December 20th, 2019, the SECURE Act became law, affecting the age an IRA account holder must take a distribution. Please refer to the source link below for more information.
Any distributions (withdrawals) from an IRA account will appear on Form 1099-R. Any contributions (deposits) made to an IRA will appear on Form 5498. To view a calendar of when your tax forms will become available, then please visit our Tax Center by clicking here.