Individual Retirement Accounts: Better Than Ever
Individual Retirement Accounts (IRA) create value for you to save for your retirement years.

Traditional IRA

  • Must have earned income and not reach age 70½by end of year
  • Annual IRA contribution limits are set for each year; see IRS guidelines
  • Annual limit applies to any combination of IRA plans other than the ESA
  • Contributions are fully tax-deductible if you are not an active participant in an employer retirement plan
  • Contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan, otherwise phase-out rules apply.
  • Investments grow on a tax-deferred basis
  • Earnings are taxed only upon withdrawal
  • Opportunity for early withdrawal - Ask us about special circumstances

Roth IRA

  • Contribute to a Roth IRA even after age 70½, with earned income
  • Contributions will not be tax deductible, but the contributions and earnings can be withdrawn tax-free.
  • Annual IRA contribution limits are set for each year; see IRS guidelines.
  • No required minimum distributions after reaching age 70½.
  • Convert your traditional IRA to a Roth IRA, to take withdrawals tax-free, but is subject to income tax now.
  • Opportunity for early withdrawal - Ask us about special circumstances

Please call Valley Bank at (406) 495-2400 for more information on Individual Retirement Accounts.