Traditional IRA
Whether you dream of flip-flops or gardening gloves, a Traditional IRA can help you work toward your goals.
traditionalWhere would you like to start?
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Roth IRA
A Roth IRA that can help you enjoy some tax-free money and make your retirement that much sweeter.
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Rollover IRA
Rolling money from an old 401(k) into an IRA can be an easy way to help plan for a sunny future.
rollover
Traditional IRA
What is it?
The Traditional IRA has been a popular retirement plan since it hit the scene in 1974. That’s when the government signed it into law because it didn’t look like people were going to have enough money to support themselves during retirement.
Traditional IRAs are pretty straightforward – it’s a personal retirement plan that lets you grow money tax-deferred. Even better, if you meet income requirements, your contributions are generally tax deductible, which may mean a lower tax bill.
Even if you make too much money to qualify for the tax deduction, you can probably still contribute to a Traditional IRA. While you won’t get the tax deduction on the contribution, your earnings have the potential to grow tax-deferred.
Now is the time to take control of your future retirement. All it takes is a call to a COUNTRY Financial® representative.
How it works
Retirement plans can be complicated, but Traditional IRA rules are pretty straightforward. Here are some of the most significant rules.
You must have qualified earned income to make contributions to a Traditional IRA. You may also receive a tax deduction if your Modified Adjusted Gross Income (MAGI) falls within these limits:
2024 Tax Year (For active participants of a business retirement plan)
- Single filer, full contribution
- MAGI $77,000 or less
- Single filer, partial contribution
- MAGI $77,000-$87,000
- Married, filing jointly, full contribution
- MAGI $123,000 or less
- Married, filing jointly, partial contribution
- MAGI $123,000-$143,000
The IRS limits how much you can contribute each year to your Traditional IRA. You don’t have to contribute that much, though, and you don’t even have to contribute every year.
2024 Tax Year
- Under age 50: Limit of $7,000
- Age 50 and older: Limit of $8,000
When it’s time to withdraw the money, there are a few rules you should know about:
- If your contributions were tax-deductible, you’ll have to pay ordinary income taxes when you take a distribution of those contributions. You'll also pay ordinary income tax on any earnings.
- At age 72 (or 70 ½ for individuals born on or before July 1, 1949) you have to start taking money out – known as your Required Minimum Distribution (RMD). If you don’t there is a substantial tax penalty.
- You don’t have to wait that long, though. You can start withdrawing the money as early as 59 ½ without penalties.
- Withdrawing money before age 59 ½ will result in a 10% penalty. There are some exceptions to this rule, though. The money can be withdrawn penalty-free for: disability, certain medical bills, first home purchase ($10,000 lifetime limit), health insurance premiums during unemployment of 12 weeks or more, qualifying educational expenses or distributions to your beneficiaries because of your death.
What's in it for you?
There are a lot of Traditional IRA benefits. The biggest perks are:
- You may get tax deductions for contributions and a lower tax bill.
- Growth is tax-deferred.
- You’re actively doing something for your future retirement.
You’ll get those benefits no matter where you have your IRA because the IRA itself has the same general rules at every financial institution. It’s simply an account where you put your money.
What sets IRAs apart are the investments you put in them. We think you’ll be impressed with the Traditional IRA options COUNTRY Financial has to offer you.
Funding options
When it comes to funding your Traditional IRA, it's good to have options. We'll help you select what makes the most sense for you. Some choices we offer:
- Fund your IRA with an annuity for lifetime income.
- Choose professional investment management. Our investment pros invest the money for you, so you don't have to worry about it.
Roth IRA
What is it?
The Roth IRA can be a tax-smart way to help you prepare for retirement. It’s a personal retirement plan that was created as part of the Taxpayer Relief Act of 1997.
Similar in many ways to its older sibling – the Traditional IRA – the Roth IRA boasts some very tax-friendly features that make it unique in the retirement plan world. Most notably, while you don’t get an income tax deduction when you put money into the Roth – your potential earnings grow tax-free as long as you follow a few simple rules. That’s one of the biggest Roth IRA benefits.
The other big perk has to do with taking distributions. Simply put – you don’t have to take any. While other retirement plans may require you to start taking money out when you’re 72, the Roth IRA doesn’t make you do so, and that may make it a beneficial way to pass money on to your heirs – income tax free.*
How does it work?
While a little more complex than a Traditional IRA, Roth IRA rules are still pretty straightforward. Here are some significant rules you’ll probably want to know about.
Qualifying to make contributions is easy – you have to have earned income, and your Modified Adjusted Gross Income (MAGI) has to fall within these limits.
2024 Tax Year
- Single filer, full contribution
- MAGI $146,000 or less
- Single filer, partial contribution
- MAGI $146,000-$161,000
- Married, filing jointly, full contribution
- MAGI $230,000 or less
- Married, filing jointly, partial contribution
- MAGI $230,000-$240,000
The IRS has limits on how much you can contribute each year to your IRA. You don’t have to contribute that much, though, and you don’t have to contribute every year.
2024 Tax Year
- Under age 50: $7,000 or 100% of earned income, whichever is less
- Age 50 and older: $8,000 or 100% of earned income, whichever is less
When it comes to the money in your Roth IRA, think of it as two piles – one with the contributions and the other with any earnings on those contributions.
You can take the contribution money out at any time without penalty or taxes.
To withdraw the earnings penalty- and tax-free, your initial contribution has to be in the Roth for at least five years and you have to be at least age 59 ½. Withdrawing money before age 59 ½ will result in a 10% penalty. There are exceptions, including:
- Disability
- Distribution to your beneficiaries due to your death
- Buying your first home, which has a $10,000 lifetime limit
What's in it for you?
There are a lot of good reasons to open a Roth IRA. The biggest perks are:
- Growth is tax-free, and qualified distributions are tax and penalty-free.
- You don’t ever have to take the money out, so your beneficiaries could enjoy some very nice income tax-free money. *
- You’re actively taking charge of your future retirement.
But here’s something a lot of people don’t know – Roth IRA rules are generally the same at every financial institution. It’s simply an account where you put your money. The investments you put in them are what the difference is all about, and the Roth IRA options at COUNTRY Financial® set us apart.
Funding options
No two people are alike, and that’s especially true when it comes to funding your future.
That’s why, at COUNTRY Financial, you won’t be pushed into an investment because it’s all we have to offer. Instead, our funding options are geared for all kinds of investors, so you have a good chance of finding the right one for you. And we're here to help. Some choices we offer:
- Fund your IRA with an annuity for lifetime income.
- Choose professional investment management. Our investment pros invest the money for you, so you don’t have to worry about it.
Rollover IRA
What is it?
The odds are you’ll change jobs during your working years.
In fact, the average American worker changes jobs 11 times before retiring.1 If every one of those jobs offered a retirement plan, like a 401(k), that could mean 11 different retirement plans. What could you do with that money? Basically, you have four options with former employer 401(k) money.2 You can:
Take the money
You'll probably pay a penalty and taxes. The distribution is generally subject to ordinary income tax and a potential IRS early distribution penalty.
Leave it where it is
If you're happy with the plan and the investment options, this is an easy choice. However, only certain plans allow this.
Roll it to your new employer's retirement plan
It’ll be easier to keep track of your retirement money that way. Remember though - if you decide to do this, you may not have the opportunity to roll the money out until you change jobs again. Also, only certain plans allow this.
Roll it to an IRA
If you have more than one retirement plan with previous employers, you can probably roll them all to one IRA. This option may make it easier for you to keep track of your retirement money.
How does it work?
There are two events that might make you consider a rollover from an employer retirement plan: changing jobs and retirement.
Direct rollover
With a direct rollover, you can open an IRA at a financial institution – like COUNTRY Financial®, tell your former employer you want to roll the money over, and then invest the money. Or if you already have an IRA, you may be able to roll the money into your current retirement plan.
Indirect rollover
With an indirect rollover, the assets from your former employer retirement plan would go to you (less a percentage they’re required to hold back for federal taxes), and you'd have 60 days to roll over the amount to an eligible retirement plan.
What's in it for you?
An IRA rollover can help you manage your retirement accounts by allowing you to move money from one tax-favored retirement plan into another.
For example, you can roll the money to a Traditional IRA or a Roth IRA. You'll want to look at your tax situation to see which one would make the most sense for you. Some benefits of an IRA rollover:
- It's one way to avoid possible penalties for early withdrawal.
- The earnings on your retirement dollars will continue to have tax-deferred growth potential.
- You may have more flexibility in the investments you select.
Funding options
Are you investment savvy, have zero interest in the financial markets, or somewhere in between? Wherever you are on the investment scale, COUNTRY Financial probably has a funding option to suit you. Some choices we offer:
- Fund your IRA with an annuity for lifetime income.
- Choose professional investment management. Our investment pros invest the money for you, so you don’t have to worry about it.
Ready to start?
Talk to a COUNTRY Financial representative to get more details and review the pros and cons of your options.
COUNTRY Financial® is a family of affiliated companies (collectively, COUNTRY) located in Bloomington, IL. Learn more about who we are.
NOT FDIC-INSURED
May lose value
No bank guarantee
Investment management, retirement, trust and planning services provided by COUNTRY Trust Bank®.
Registered broker/dealer offering securities products: COUNTRY® Capital Management Company, 1711 General Electric Rd, PO Box 2222, Bloomington, IL 61702-2222, 866-551-0060. Member FINRA. Read our full Customer Relationship Summary and Investor Handbook.
Investing involves risks, including the possible loss of principal.
For product and service information, read our Terms and Conditions.
COUNTRY Financial® representatives cannot give tax or legal advice. Please consult legal and tax counsel of your choice regarding your personal circumstances.
Diversification, rebalancing, and asset allocation do not ensure a profit or protect against loss in a declining market.
Annuities issued by COUNTRY Investors Life Assurance Company®, Bloomington, IL. Funding your IRA with an annuity does not offer additional tax benefits.
COUNTRY Financial and our representatives cannot give legal or tax advice. Please consult tax and legal counsel of your choice regarding your personal circumstances.
A mutual fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus or summary prospectus contains this and other important information about the investment company and may be obtained by calling 1-866-551-0060. Read it carefully before investing.
Income limitations, contributions and distribution exemptions and limitations are all subject to change.
*Consult with your attorney or an estate planning professional for more information.
1“Smart 401(k) Investing – Moving Your 401(k),” FINRA. [Smart 401k Investing]
2Be sure to understand the benefits and limitations of all available options for assets in a former employer retirement plan before making a decision. You should consider factors such as differences in services provided, available investment options, fees and investment related expenses, when penalty free withdrawals are available, when required minimum distributions may apply, protection of assets from creditors and legal judgments, availability of loans and other concerns specific to your situation. You should consult with the plan administrator and a professional tax advisor before initiating a distribution.