Frequently asked questions about IRAs
What is the deadline for making a contribution?
The date your income taxes are due for that tax year, generally April 15 of the following calendar year.
When can I make withdrawals from my IRA account?
At any time, but the taxable portion of your withdrawal will become part of your income for the year. In most cases, if funds are withdrawn before age 59 ½, a 10% IRS tax penalty is being applied on the taxable portion of your withdrawal. Certain exemptions may apply, such as the purchase of a first home (up to $10,000), higher education expenses, or disability. Roth IRA accounts must remain open for at least 5 years and meet one of the exemptions in order to avoid tax penalties.
What are the distribution requirements for my Traditional IRA account?
Once you reach age 70 ½, you are responsible for a required minimum distribution (RMD) each year. We will not make a withdrawal from your account unless you make a specific request. We offer services to schedule your payment automatically. Consult with a Citizens Banker to obtain more information.
Can I make an IRA contribution for my spouse?
Yes, if you are married and filing a joint tax return and your modified adjusted gross income (MAGI) equals or exceeds the combined contribution amount for you and your spouse.
Which options are there for self-employed individuals or business owners?
A Citizens SEP (Simplified Employee Pension) plan may be the best option. To obtain detailed information, call our Retirement Services department at 1-800-948-7200 (phone number only available in English).
What are the current IRA CD terms and yields?
The terms and yields are the same as Citizens' other CD products. Click here to view the chart page of the current CD rates .