Contributions to a Traditional IRA are based upon compensation and age.
- To make a regular Traditional IRA contribution for any tax year, an individual must be younger than 70½
- Your contributions may range from fully deductible to totally non-deductible, based on your filing status and Adjusted Gross Income (AGI)
- Withdrawals prior to age 59½ may be taxable and subject to the IRS 10% early withdrawal penalty
A SEP IRA is funded with employer contributions.
- Your employer can put in a certain percentage of your compensation
- A good plan for employers with a low number of employees
- Less expensive to administer than 401K or Profit Sharing plans
- Employee contributions can also be made to the account
For more information, please contact the Fowler State Bank IRA Department at 765-884-1200 or 800-439-3951.