A Traditional IRA (Individual Retirement Account) is one of the most popular ways to save for retirement, featuring:

  • tax-deferred earnings until withdrawn after age 59½ at which time earnings are taxed at your current rate at the time of withdrawal.
  • contributions and earnings can be withdrawn penalty-free at any time
  • $1 million exclusion from bankruptcy

Unlike a Roth IRA, contributions may be tax-deductible.*

ELIGIBILITY REQUIREMENTS

A Traditional IRA is available to:
  • anyone under age 70½ who has earned income
  • a non-working spouse may also be able to contribute if certain conditions are met.

Consult your Frost Wealth Advisor for more details.

CONTRIBUTION LIMITS

The maximum annual contribution to a Traditional IRA is the lesser of $5,500 for tax year 2014 or 100% of compensation. For those individuals who are 50 or older at the end of the tax year, an additional annual "catch-up" contribution of $1,000 may be made.

DISTRIBUTIONS

Required minimum distributions must begin by April
1 following the year an individual turns age 70½. For all subsequent years, including the year in which the first distribution was paid by April 1, the required minimum distribution must occur by December 31. You may be charged a 10% IRS early withdrawal fee if you withdraw earnings before the age of 59½, with the following exceptions:
  • disability
  • qualified first-time home purchase ($10,000 lifetime limit)
  • qualified higher-education expenses
  • qualified military reservist
  • medical expenses in excess of 7.5% of Adjusted Gross Income (AGI)
  • health insurance premiums if unemployed for 12 consecutive weeks
  • substantially equal payments made over life expectancy
  • death

INVESTMENT OPTIONS AND FEES

For potentially higher returns consider investing. If you want FDIC Insurance, you may want to consider a Frost CD.

Non-FDIC Insured

  • mutual funds
  • stocks
  • bonds
  • annuities

FDIC-Insured

  • CDs

CDs have no annual fee for the IRA and no account fee for the CD.

Fees vary for non-FDIC insured options. Contact one of our Frost Wealth Advisors by calling (888) 268-9202
for more details.

*DEDUCTIBILITY REQUIREMENTS

Tax-deductible traditional IRA contributions are subject to an income phase-out rule. This means that starting at a certain level of Adjusted Gross Income, or AGI, your ability to take a tax deduction is phased-out.

2014 Traditional IRA AGI Deduction Limits
(If Covered by a Retirement Plan at Work)

​Filing
Status
Full Deduction​ Phase-Out​ No Deduction​
Single,
head of household​
$60,000
or less​
$60,000 - $70,000​ $70,000
or more​
Married filing jointly​ $96,000
or less​
$96,000 - $116,000​ $116,000
or more​
Married filing separately​ ​Less than $10,000 ​$10,000
or more

 

2014 Traditional IRA AGI Deduction Limits
(If NOT Covered by a Retirement Plan at Work)
 

​Filing
Status
Full Deduction​ Phase-Out​ No Deduction​
Single, head of household​ No limit​ ​No limit ​No limit
Married filing jointly (spouse not covered)​ ​No limit ​No limit ​No limit
Married filing jointly (spouse covered)​ ​$181,000
or less
​$181,000 - $191,000 ​$191,000
or more
Married filing separately (spouse covered)​ Less than $10,000​ ​$10,000
or more