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IRA Contribution Deadline is April 18, 2011
March 25, 2011
There's not much time left to maximize your Individual Retirement Account (IRA) contribution for 2010. If you haven't started saving for your retirement, but want to, tax laws allow eligible taxpayers to open and contribute to an IRA up to the day tax returns are due.
For tax year 2010, the contribution amount for an eligible individual is the smaller of $5,000 or the amount of your taxable compensation. A catch-up contribution of an additional $1,000 can also be made for individuals 50 years and older. Be sure to consult your tax advisor to make sure your IRA contribution is tax deductible.
Regardless of your age, contributing to an IRA is a very important part of a retirement plan. The earlier you begin contributing, the longer you allow your savings to grow. Farm Bureau Bank understands that and offers a solid financial foundation through a diverse mix of retirement options. Learn more about some of the Farm Bureau Bank IRA options and features from the chart below.
Retirement Choices – Different Types for Different Needs
| IRA Options | Features | Contributions | Who benefits? |
|---|---|---|---|
| Traditional IRA | Tax sheltered retirement option that enables you to defer taxes on your earnings until you withdraw them. Contributions may be tax deductible. | $5,000 per year maximum | People who expect to be in a lower tax bracket when they retire. People who are looking for tax deductions and tax-deductible contributions. |
| Roth IRA | Earnings are tax-exempt as opposed to up front deductions, allowing principal to build up quickly. Withdrawals are tax-free. No mandatory withdrawal rules. |
$5,000 per year maximum | People who are a long way from retiring and expect to be in the same or higher tax bracket at retirement. People who are expecting to be earning more at retirement. |
| Coverdell Education Saving Account | Contributions are tax free, but not tax deductible. Designed to help save for educational costs. | $2,000 per year maximum | People interested in saving for a child's education. |
Learn more about Farm Bureau Bank IRAs, including how to apply. Take advantage of tax-deferred investing
and open or contribute to your IRA today!
As with all IRAs, Federal withdrawal restrictions apply and a penalty will be imposed if there is an early withdrawal from the account. Consult your tax advisor for more information.
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