Citi Personal Wealth Management
The following content is complex, and you should consult an expert about this topic.
As the name suggests, an Individual Retirement Account (IRA) can help you save and invest for retirement. Depending on which type you select, traditional or Roth, you'll receive certain tax and savings advantages—powerful tools to help you with your retirement goals. But as you'll see below, there are several differences between traditional and Roth IRAs. Learning about them can help you decide which is better for you.
For current contribution limits to both visit: IRS
|Required Minimum Distributions|
|Income Eligibility Limits|
|Benefits Common to Both|
* The recently enacted CARES Act offers waivers and suspends certain tax requirements for 2020. Please contact your tax advisor for additional information.
|Accessing Your Money|
Withdrawals are permitted at any time and subject to ordinary income tax. But withdrawals taken before age 59 and a half will also incur a 10% penalty for early withdrawal.*
Penalty–free conditions include:
Contributions can be withdrawn at any time without taxes or penalties. If you've held a Roth IRA, including converted accounts, for less than five years and withdraw earnings before reaching age 59 and a half, you may be subject to income tax and a 10% early withdrawal penalty.* Exceptions to the penalty for early withdrawal are the same as those with a traditional IRA, and qualified birth or adoption distributions may similarly be repaid without regard to the 60 day rollover time limit.
If you're considering rolling over money from an Individual Retirement Account (IRA) or employer retirement plan, make sure you understand the rules before making a decision, including that you may be able to leave your money where it is. Here's a brief summary:
Employer Retirement Plans. When leaving an employer, you typically have four options on what to do with your retirement benefit in an employer sponsored retirement plan (and may engage in a combination of these options):
In many cases, you don't have to act immediately upon switching jobs or retiring. The decision to transfer funds out of an employer's plan is irrevocable. Before making a decision, take time to assess factors such as your age, financial needs, personal situation, fees and expenses, investment options and services.
IRA Rollovers. Unlike employer retirement plans, IRAs have different rules on rollovers, including that you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own.
To learn more about rollover rules, speak with one of our Citi Personal Wealth Management Financial Advisors, who follow practices and procedures to ensure clients are receiving the most appropriate guidance for their individual situations.
The transfer, rollover and withdrawal of retirement assets in IRAs, 401ks and other types of qualified accounts are governed by specific rules and laws and may involve significant tax consequences and limitations. Before making any decisions regarding the disposition of your retirement accounts, please consult your tax advisor or accountant.
Citi). Not all products and services are provided by all affiliates or are available at all locations. CPB personnel are not research analysts, and the information in this Communication is not intended to constitute
research,as that term is defined by applicable regulations. to footnote reference 1
Citi Personal Wealth Management is committed to helping you work toward your financial objectives and a more secure future. To learn more about strategies that may help you reach your goals, speak to a Citi Personal Wealth Management Financial Advisor.
If you need more income, consider seven ways to try to boost your income and maximize savings.
Review different scenarios for when taking Social Security may make sense for you.
Learn the basics of when and how to rebalance your portfolio.
The information provided here is for informational purposes only. It is not an offer to buy or sell any of the securities, insurance products, investments, or other products named. Terms, conditions and fees for accounts, products, programs and services are subject to change.
Citigroupand its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Citi Personal Wealth Management is a business of Citigroup member .
Citigroup Life Agency (
CLA) offers insurance products. In California, does business as Citigroup Life Insurance Agency, (license number 0G56746). Citibank, CGMI, and are affiliated companies under the common control of Citigroup
© CitigroupCiti, Citi and Arc Design and other marks used herein are service marks of Citigroup or its affiliates, used and registered throughout the world. 4/20