IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government. The limits are periodically adjusted to compensate for inflation and increases in the cost of living.
For the 2013 tax year, you can contribute up to $5,500 to all IRAs combined (the limit will be adjusted annually for inflation). If you have a traditional IRA as well as a Roth IRA, you can only contribute a total of the annual limit in one year, not the annual limit to each.
If you are age 50 or older, you can also make a $1,000 annual “catch-up” contribution.
Employer-sponsored retirement plans such as 401(k)s and 403(b)s have a $17,500 contribution limit in 2013; individuals aged 50 and older can contribute an extra $5,500 each year as a catch-up contribution.
If you are currently contributing to an IRA or an employer-sponsored retirement plan, it may be wise to check the contribution limit each year in order to put aside as much as possible.
Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income and may be subject to an additional 10% federal income tax penalty if taken prior to reaching age 59½. If you participate in both a traditional IRA and an employer-sponsored plan, your IRA contributions may or may not be tax deductible, depending on your adjusted gross income.
State Bank of Southern Utah provides two in-house professionals for all of your retirement and investment needs.
Phone: 435-865-2319
Fax: 435-865-2219
Mobile Phone: 435-868-8701
E-mail: jay.decker@ceterais.com
Cedar City Branch
Phone: 435-652-7000
River Road Branch
Hometown banking was established in southern Utah with the opening of State Bank of Southern Utah in 1957.
Hometown banking is important because people who live and work in southern Utah make the decisions. Bank employees and officers understand the banking needs of area residents because they are affected by the same economic climate. Find out what hundreds already know - hometown banking is better.