Retirement & IRAs
Washington Trust offers both traditional and Roth IRA options. Created to encourage individuals to save for and manage their retirement, IRAs have the benefit of an interest-bearing investment, with the added bonus of potential tax deductibility, deferment, or even tax-free earnings.
|Traditional IRA||Roth IRA|
|Who can contribute?||Anyone with earned income||Depends on modified adjusted gross income (MAGI)|
|How much can be contributed a year?||Under age 50: Up to $6,000; Over age 50: Up to $7,000||Under age 50: Up to $6,000; Over age 50: Up to $7,000|
|How does the account grow?||Tax-deferred growth||Tax-free earnings|
|When can withdrawals begin without penalties?||When owner is 59 1/2 years old||Once a five-year holding period has been met along with other guidelines|
|Are the contributions deductible?||All or part of the contribution is—if you qualify||Contributions are never deductible|
|When is federal income tax due?||Due upon withdrawal of earnings and deductible contributions||No federal income tax|
|How long can contributions be made?||Up to age 70 1/2||As long as income is earned—even after age 70 1/2|
|When does the IRA need to be distributed by?||Up to age 70 1/2||Does not have a mandatory distribution age|
* Beginning in 2009, the contribution limits are subject to Cost-of-Living (COLA) adjustments. Additionally, if you have attained age 50 1/2 or older by the end of your taxable year, you are eligible to make catch-up contributions.
Your selection depends on a few factors—for example: age, income and whether you're investing in an employer plan. Get started saving for retirement now—no matter what stage of life you are in.Additional product information and details for Traditional Fixed-Rate IRA Additional product information and details for Fixed-Rate Roth IRA