Individual retirement account: These are trusts or custodial accounts set up with a
corporate trustee (i.e. bank, insurance company, other financial institution) or custodian.

Individual retirement annuities: These are special annuities issued by life insurance companies.

Deadlines to Establish:

IRA’s can be established and funded anytime between January 1st. of the current year to
April 15th. of the following year, not including extentions.

Tax Treatment:

• Contributions are generally tax deductible with certain exceptions.
• Income received from a Traditional IRA is taxed at the time of disbursement. Penalties apply for early withdrawals prior to age 59 ½ and distributions are required after age 70 ½

ROTH IRA

There are two types of Roth IRA accounts:

Individual retirement account: These are trusts or custodial accounts set up with a
corporate trustee (i.e. bank, insurance company, other financial institution) or custodian.

Individual retirement annuities: These are special annuities issued by insurance companies.

Deadlines to Establish:

Roth IRA’s can be established and funded anytime between January 1st. of the current year to April 15th. of the following year, not including extentions. The account must be designated a Roth at the time of it is established.

Tax Treatment:

• Contributions are not tax deductible and subject to income limitations.
• Distributions from a Roth IRA after age 59 ½ are generally free of federal income tax.
• There is no mandatory distribution requirement during the life of the owner.

Our agency does not provide legal or tax advice. For specific legal or tax advice based on your situation, please contact your attorney of tax advisor.