Yes, you can have both a Traditional and Roth IRA. The maximum contribution for the year is accumulative. As an example, in 2023 you can contribute $3,250 to a Traditional IRA and $3,250 to a Roth IRA, and this would take you to your annual contribution amount.
For 2023, the contribution limit for both is $6,500 per year or a cumulative total of $6,500 between both a Traditional IRA and Roth IRA per year. If you are 50 years old or older, you are able to contribute an additional $1,000 as a ‘catch up’ contribution.
Anyone with earned income, including the spouse of someone with earned income (if the spouse does not), is eligible.
Yes, the Credit Union offers both Traditional IRA and Roth IRA accounts.
Contributions to a Traditional IRA are pre-tax dollars and could offer tax deductibility and contributions to a Roth IRA are after tax dollars and could offer tax free withdrawals.
A carry back contribution is a contribution made for the previous year. These contributions must be made between January 1st and the tax filing deadline.
Earned Income is W2 income needed to be eligible to make a contribution. It cannot include Pension, Social Security or 401K Distribution funds. Modified Adjusted Gross Income (MAGI) is the annual income amount (calculated on your Federal income tax return) that cannot be exceeded in order to make a contribution.