Frequently Asked Questions: IRA savings and IRA CDs

The contribution limits for 2024 is $7,000 for individual under at 50 and $8,000 for individuals age 50 and older.

To open a new IRA, please visit a local branch. Find a branch near you.

IRA Withdrawals can be made a your local branch. You can also call Retirement Services at 800-948-7200 and request an IRA Withdrawal form be sent to you. IRA Withdrawals cannot be done over the phone. Find your local branch.

Age Limit to Contribute

• Traditional: No Age Limit (as long as there is earned income).
• Roth: No Age Limit (as long as there is earned income).

Income Restrictions

• Traditional: Anyone with earned income can contribute, however, deductibility is based on income limits, filing status and participation in employer sponsored plan.
• Roth: Contribution eligibility is based on income and filing status.

Tax Treatment

• Traditional: Contributions may be tax deductible. Distributions are considered taxable.
• Roth: No tax deductions for contributions. Basis and earnings tax free after 5 years and qualifying event. (Basis can always be withdrawn penalty and tax free. Earnings are distributed last from a Roth.)

Yes, however combined contribution amounts cannot exceed the annual limits.

You have two options. You can do a trustee to trustee Transfer or an Indirect rollover. Transfers are not reportable to the IRS and the assets move from one institution directly to the other. Alternatively, you can take a distribution from one IRA (payable to you), and rollover the assets within 60 calendar days. A rollover is reported to the IRS, but not taxable. Only one distribution may be rolled over within a 12 month period.

Once you reach age 73, 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.

The date your income taxes are due for that tax year, generally April 15th of the following calendar year.

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 In most cases, if funds are withdrawn before age 59 ½, a 10% IRS tax penalty is being applied on the taxable portion of your withdrawal.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 five years and meet one of the exemptions in order to avoid tax penalties.

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.

An IRA owner may complete only one IRA to IRA rollover in any 12-month period, regardless of the number and type or IRAs owned by the individual. This rule applies to all IRAs-Traditional, Roth, SEP and SIMPLE-as well as Coverdell Education Savings accounts. You should consult with a tax advisor to determine if these rules affect your tax situation.

If you have questions around IRA Rollover rules, please call our Retirement Services department at 1-800-948-7200, Monday through Friday between 8:30 a.m. and 5:00 p.m. Eastern Time.

Once you reach age 73, 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.

The date your income taxes are due for that tax year, generally April 15th of the following calendar year.

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 five years and meet one of the exemptions in order to avoid tax penalties.

Once you reach age 73, 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.

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.

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).