The good news for Americans is that we're living longer.  The bad news is that the Social Security system in its present form can't survive the age structure of the U.S. population.  This makes an IRA, either a Roth IRA or a Traditional IRA, an important part of your retirement planning.

IRAs are simply a set of rules governing the annual contributions, transfer and rollover activities, distributions and tax consequences.  Think of it as an umbrella set of rules—underneath the umbrella is the actual investment product.

IronStone Bank offers IRA plans for individuals interested in building for their future security by investing in products that will help them realize their individual goals.  Individuals may be able to deduct contributions in whole or in part depending on individual circumstances.

The two main types of IRAs are:

These investments have been popular with Americans for years and offer a wide range of investment vehicles.  To review the maximum annual contribution for a Traditional IRA, click here.  These contributions may, or may not, be fully deductible, depending on the individual circumstances.  Deductibility depends on whether or not the individual or spouse is covered by a retirement plan at work, filing status, and personal income.  Even though an individual may not be able to fully deduct, they can still contribute up to the maximum allowable annual contribution or 100 percent of compensation, whichever is less.

This IRA became available to taxpayers January 1, 1998.  Roth IRA contributions are always made with after-tax dollars.  The earnings are TAX-FREE, as opposed to tax-deferred, when you retire pursuant to certain provisions.  To review the maximum annual contribution limit, click here.  Here again, you have a wide choice of investments.

Note: You may contribute to both a Traditional IRA and a Roth IRA, but your total contribution is limited to the maximum annual contribution allowable by law.  See your IronStone Bank banker for details.