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Traditional Individual Retirement Account

A Retirement Plan For Growing Your Nest Egg.

Couple enjoying a fun boating excursion thanks to their Traditional Individual Retirement Account from Columbia Bank At Columbia Bank, we're dedicated to helping you plan for that future. That's why we offer the tax-advantaged traditional IRA. This investment solution allows you to save for retirement with one of the largest financial banks in New Jersey.

Columbia Bank Traditional IRA:

  • You can open or fund your IRA at anytime until your federal tax return is due.  Normally, by April 15.
  • The maximum allowable IRA contribution for tax year 2019 is $6,000. ($7,000 for individuals age 50 and older)
  • Allows individuals to enjoy tax-deferred interest while saving for retirement.
  • IRA contributions are tax deductible for individuals who are not active participants in qualified retirement plans.
    For active qualified plan participants, a tax deduction may be available - depending on income levels and marital status.
  • Direct Rollover IRA allows an individual to retain tax-deferred status when rolling over funds from a qualified retirement plan, like a pension plan or 401K plan.  
  • Beginning January 1, 2015 the Internal Revenue Service allows you to make only one tax free IRA-to-IRA rollover during a 12 month period.  This new limit applies no matter how many IRAs you own or where you hold them.  
  • You can make unlimited trustee-to-trustee direct transfers between IRAs.
  • A taxable distribution from your traditional IRA prior to attaining age 59 ½ may be subject to IRS 10% early distribution penalty.  The 10% penalty will not apply if an exception applies.
  • IRA distributions are not subject to IRS penalty after attaining age 59 ½.
  • Minimum required distributions must start at age 70 ½.
  • After attaining age 70 ½ you are not allowed to make contributions to a Traditional IRA.
  • IRA funds grow at a faster rate because IRA earnings are tax deferred.

Contact Columbia Bank today to speak with a representative about traditional IRAs!

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