IRA Savings Information

Retirement Planning & Investing
Unlike many of our parents and retired relatives, today's average adult will change jobs at least five times during his/her lifetime. This greatly reduces the opportunity to accumulate adequate reserves in company pension plans. The increase in the number of new industry "start-ups" lessens your chances for retirement options, as well, since most entrepreneurs cannot readily afford to offer this type of benefit.
And, social security is merely a supplement to your retirement income - not the answer to it.

Take charge of your future. Let's start by taking a look at IRA options

Traditional IRA

Traditional Individual Retirement Arrangements Offer:

A viable option to a more secure retirement.
Immediate tax benefits. Contributions may be tax deferred until retirement.
Flexibility, since there is no minimum contribution in any year.
Accessibility. Unlike most employer plans, your funds are always available.

You Can Contribute:

If you are under the age of 70 ½ for the year that you are making the contribution.
If your earned income from employment is equal to or greater than your IRA contribution.

Traditional IRA Contribution Limits:

2002 - 2004 $3,000 for individuals or $6,000 for married couples
2005 - 2007 $4,000 for individuals or $ 8,000 for married couples

For more details on Traditional IRAs, including additional advantages, please contact your nearest QNB&T branch office.

Roth IRA

How Is The Roth IRA Different From The Traditional IRA?

As long as you remain within the contribution guidelines, the money you contribute has already been taxed, so the principal amount is never subject to taxes or penalties in the future.
The money you contribute is allowed to grow tax-deferred.
If you do not withdraw any of the earnings for at least five years, your tax-deferred earnings become tax-free.

You Can Contribute:

Without restriction to age, as noted in the Traditional IRA. You simply are required to have earned income equal to the amount you contribute - up to the maximum amount set each year.

Roth IRA Contribution Limits

2002 - 2004 $3,000 for individuals or $6,000 for married couples
2005 - 2007 $4,000 for individuals or $8,000 for married couples

Can I Move Money From My Traditional IRA To My Roth IRA?

Yes. However, specific rules govern this process. You should always seek advice from a professional tax advisor to determine whether or not the transfer of any funds is beneficial.

Want to learn more about Roth IRAs? Please contact the QNB&T office nearest to you.

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