Traditional IRA

A retirement plan and determination will take you where you want to go – traveling, golfing, or relaxing by the lake. Whatever you have in mind for your golden years, a Ouachita Valley individual retirement account (IRA) is a safe harbor for your retirement funds. There are now more IRA types and maturity options at Ouachita Valley than ever.

A traditional IRA allows your assets to grow tax-deferred, meaning you won’t pay any taxes on earnings until you withdraw the assets. For many investors, contributions to a Traditional IRA will also be tax-deductible.

Traditional IRA Key Features:

  • Must be under age 72 with earned compensation to start an IRA

  • Taxed deferred growth

  • Max contribution limits:
    2023 - $6,500

  • Catch up contributions for workers 50+
    2023 – $1,000

  • Possible tax deductible contributions

  • Earnings and deductible contributions subject to tax upon withdrawal

  • 10% early withdrawal penalty if you are under 59 1/2, exceptions are:

    • Death of account owner

    • Part of a series of equal periodic payments

    • First time home buyer

    • Higher education expenses

    • Health insurance premium payments for unemployed individuals

    • Medical expense payments in excess of 7.5% of an individual AGI

    • Minimum required distribution must start at 72

Your tax situation may vary. Consult with a tax advisor for full details on deductibility of contributions, earnings, and early withdrawal penalties.