IRAs
Individual Retirement Account (IRA)
IRAs provide a way for you to make a tax-deferred or tax-free* investment for your retirement. Iowa State Bank offers two IRA products for customers who are looking to set money aside for retirement.
Our experienced bankers are available to help you decide which product would work the best for you.
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| Traditional IRA | Roth IRA | | Tax Deductible Contributions | Contributions could qualify for a tax deduction.* | Your contributions aren’t deductible. | | Is there a limit to the amount I can contribute? | The most you can contribute to all of your traditional and Roth IRAs is the smaller of: - $6,000 or $7,000 if you’re age 50 or older by the end of the year; or
- your taxable compensation for the year, if your compensation was less than this dollar limit
| | When is the contribution deadline? | Contributions for the previous year may be made up until April 15th of the current year. | | Do I have a required minimum distribution? | You must start taking a RMD by April 1 following the year you turn 72 and by December 31st of later years. | Not required if you are the original owner. | | Can I take a withdrawal at any time? | Yes | Yes | | Are my withdrawals taxable? | Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. If you are under age 59 ½ you may be subject to an additional 10% tax for early withdrawals unless you qualify for an exception*. | None if it’s a qualified distribution Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.* | | | | | | | |