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Individual Retirement Accounts

Get started on the path to the retirement you want.

Depending on the type of IRA you choose, contributions may be tax-deductible and will grow either tax-deferred or tax free!

Traditional IRA Roth IRA
Age Anyone with Earned Income Can Contribute Anyone, regardless of income level, even after age 72. Anyone, even after age 72.
Spouses with One
Earned Income Can Contribute For Both
Yes Yes
Contributions After Age 72 Allowed Allowed
2023 Maximum Annual Contributions
(The maximum can be contributed to one IRA type or the other – or – split between both. For ages 50 and over, the amount includes $1,000 catch-up).
Under 50 - $6,500
50 and Over - $7,500
Under 50 - $6,500
50 and Over - $7,500
2022 Maximum Annual Contributions
(The maximum can be contributed to one IRA type or the other – or – split between both).
Under 50 - $6,000
50 and Over - $7,000
Under 50 - $6,000
50 and Over - $7,000
Catch-up Contribution Limits for Anyone Age 50 and Over Up to $1,000 Up to $1,000
Contribution Restrictions
(May be limited depending on your Modified Adjusted Gross Income)
(If active participant in employer retirement plan)
Contribution Deadlines
(Contributions can be made between Jan 1 and the date your tax return is due for that tax year, excluding extensions).
Typically, April 15 of the following year
Typically, April 15 of the following year
Earnings Grow tax-deferred until withdrawn Grows tax-free
Taxes Upon Withdrawal Withdrawals are taxed as income
No (Unless taxed for early withdrawal)
Tax Advantages Yes
(Deductible contributions tax-deferred until withdrawal)
(Qualified withdrawals are tax-free after age 59½ and 5 years invested)
Tax Deductibility for Contributions Yes
(Tax deferred up to 100% depending on MAGI and participation in an employer-sponsored retirement plan)
(Taxes are paid up-front)
Most Withdrawal Restrictions Before Age 59½ Result in IRS Penalties. Yes Yes
IRS Penalty for Early Withdrawal.
None if:
• Over age 59½
• Qualified medical expenses
• First-time home purchase (up to $10,000)
• Child Birth/Adoption (up to $5,000)
• Death or disability
• Qualified college expenses
• Due to IRS levy
See your tax advisor for other distribution options.
Yes Yes
Bank Penalty for Early Withdrawal Penalties Apply Yes Yes
Required Distributions Yes (Must begin when participant turns 72)*
Yes (After death of the participant)
Age at Which Withdrawals Must Begin 72* N/A
*Unless IRA owner was born prior to July 1, 1949, then required distributions must begin April 1st of the year following the year they attain age 70½.
Refer to First Bank of the Lake’s Truth in Savings Disclosure for additional account information. Please ask a Personal Banker for current rate information. Information for this chart was obtained from the IRS website. Where language is unclear, assumptions have been made. Investors must consult with their tax advisor or legal counsel for advice and information concerning their particular situation. Representatives of this bank may not give legal or tax advice.

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