When must I begin taking IRA distributions?

Absolutely! At Gate City Bank, we make it simple and painless to roll over¹ or transfer funds from the following types of retirement plans:

• Pensions
• Profit-sharing plans (including 401(k) salary-reduction plans)
• Stock bonus plans
• HR-10/Keogh plans
• 403(b) tax-sheltered annuities
• Federal Thrift Savings Plans (TSP) (including the IRC 7701(j) code section)
• Section 457 state and local government plans

Simply stop by one of our locations if you have any questions.

Contributions for the current tax year can be made anytime within that year. Also, you have until the tax filing deadline to make contributions for the previous tax year (excluding extensions).

With traditional IRAs, there are no contribution restrictions as long as you meet the qualifications. For Roth IRAs, however, contributions are restricted based on gross income.

Roth IRA contributions aren’t tax-deductible, but traditional IRA contributions are deductible if you (and/or your spouse) are not active participants in an employer-sponsored retirement plan. If you do participate in such a plan, your contribution may be partially deductible or not deductible at all.²

For a Roth IRA, you won’t face a penalty if the five-year holding period is met. And for both Roth and traditional IRAs, you won’t be penalized if you’re:

• 59½ or older
• Deceased or disabled
• Covering qualified college expenses
• Buying a home for the first time (you can withdraw up to $10,000)
• Making substantially equal periodic payments

For other, less-common exceptions, please refer to IRS Publication 590.