Individual Retirement Plans

Jump to: 

Roth IRA | Traditional IRA | 403(b)

Important Information About IRA-to-IRA Rollovers

Changes for IRA-to-IRA Rollovers (including Traditional, SEP, SIMPLE and Roth), were effective January 1, 2015, only one IRA distribution may be rolled over in an IRA-to-IRA rollover transaction within any 12-month period - regardless of the number and types of IRAs (i.e. Traditional, SEP, SIMPLE and Roth) that an IRA account owner holds.

Note: These types of rollovers must still be completed with 60-days of receipt. Additionally, these changes do not apply to rollovers to (or from) qualified plans; trustee-to-trustee transfers between IRAs; or conversions to Roth IRAs.

Amundi US Roth IRA

Amundi US Roth IRA contributions are not tax-deductible, but earnings grow tax-deferred and your client can withdraw them entirely tax-free if:

  • Your client's account has been open for at least five years, and
  • Your client is at least age 59½, disabled, uses up to $10,000 to buy a first home, or upon death.

Even before your clients meet the conditions for withdrawing tax-free earnings¹, they can always withdraw an amount equal to their contributions without paying any tax — regardless of their age or how long their account has been open. That means they can take money out at any time and pay no tax until they have taken out all of their original contributions.

  Frequently Asked Questions about the Roth IRA  

Visit the Forms and Applications page for more information on what you need to open or update a Roth IRA account.

1Earnings may be subject to a 10% penalty if withdrawn before age 59½.

Who May Establish

Age limit: none.

Income limit:2
$135,000 (single tax return)3
$199,000 (joint tax return).3

 

Establishment Deadline

April 15

 

Contribution Deadline

April 15

 

Annual Contribution Limit

$5,500 for each working individual ($11,000 in total for a working and non-working spouse). Additional $1,000 is allowed if individual is age 50 or older. No tax deduction available.

 

Contribution Requirements

Contributions are discretionary each year.

 

Withdrawals4

Allowed anytime. Entirely tax-free if certain conditions are met. Otherwise, earnings subject to income tax; a 10% penalty tax may apply before age 59½.

 

Loan Feature

Not available.

2The $5,500 ($6,500 if age 50 or older) maximum Roth IRA contribution is reduced for those with Adjusted Gross Income (AGI) between $120,000-$135,000 (single) and $189,000-$199,000 (joint).

3For 2017, income limits were $133,000 (single); and $196,000 (joint tax return).

4Certain states require state withholding if you elect (or are required) to have federal income tax withheld from distributions. Contact the State Department of Revenue for more information.

This material is not intended to replace the advice of a qualified attorney, tax advisor, or insurance agent. Before your client makes any financial commitment regarding the issues discussed here, make sure he or she consults with the appropriate professional advisor.

Guide to Roth Contributions

Tax Filing Status

Adjusted Gross Income (AGI)

Maximum Roth Contributions1
Single

less than $120,000

Full $5,500
 

$120,000 to $135,000

Partial ($5,500 reduced by $10 for every $75 of AGI over $120,000)
 

over $135,000

 None
Joint

less than $189,000

Full $5,500 for each spouse
 

$189,000 to $199,000

Partial for each spouse ($5,500 reduced by $10 for every $50 of income over $189,000)
 

over $199,000

None

1 Total annual contributions to all IRAs (Traditional and Roth) cannot exceed $5,500 per spouse ($6,500 if age 50 or older) or 100% of earned income, whichever is less.

Traditional IRA

Your clients' contributions to a Traditional IRA may be tax-deductible, depending on their income and whether they participate in a retirement plan at work. 

If your clients are eligible for a tax deduction, their current-year tax bill could shrink every time they invest. For example, if they are in a 24% tax bracket and make a $6,000 deductible contribution to a Traditional IRA, they could save $1,440 on their taxes that year.

Regardless, all earnings in a Traditional IRA grow tax-deferred. Investors don't pay taxes until they withdraw their money, which usually is during retirement when they may be in a lower tax bracket.

Frequently Asked Questions about the Traditional IRA

Who May Establish

Age Limit: 70½

Income Limit: none

 

Establishment Deadline

April 15

 

Contribution Deadline

April 15

 

Annual Contribution Limit

$5,500 for each working individual ($11,000 in total for a working and non-working spouse). Additional $1,000 is allowed if individual is age 50 or older. Tax deduction depends on income level and participation in an employer's retirement plan. (See table above)

 

Contribution Requirements

Contributions are discretionary each year. 

Withdrawals1

Allowed anytime, subject to income tax. A 10% penalty may apply before age 59½.

 

Loan Feature

Not Available

1 Certain states require state withholding if you elect (or are required) to have federal income tax withheld from distributions. Contact the State Department of Revenue for more information.

2018 Guide to Traditional IRA Deductions

Tax Filing Status

Do you or your spouse participate in an employer's retirement plan?1

Modified Adjusted Gross Income (AGI)

Maximum Tax Deduction
Single

No

No Limit

Full $5,500
(or $6,500 if age 50 or older)
 

Yes

$63,000 or less

Full $5,500 
($6,500 if age 50 or older)
   

$63,001 to $72,999

Partial
   

$73,000 or more

None
Joint

No

No limit

Full $5,500 for each spouse
($6,500 if age 50)
 

Yes

$101,000 or less

Full $5,500 for each spouse
($6,500 if age 50)
   

$101,001 to $120,999

Partial for participating spouse(s); full $5,500 for a non-participating spouse ($6,500 if age 50)
   

$121,000 or more

None for participating spouse(s); full or partial for a non-participating spouse if combined AGI is under $199,000

1 Employer retirement plans include pension, profit sharing, 401(k), 403(b), Keogh, SEP, SARSEP and SIMPLE plans. If you are unsure of your participation status, refer to the pension plan box on the W-2 Form you receive from your employer each year.

403(b) Plan

Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to employees of public schools, nonprofit hospitals and other specific tax-exempt organizations. This plan lets employees set aside a portion of their salary, before taxes, through payroll deduction.

Who May Establish

Employees of public schools and tax-exempt 501(c)(3) organizations.

 

Establishment Deadline

Before employee contributions begin.

 

Contribution Deadline

Salary deferral contributions generally deposited with each pay period. 

 

Who Contributes

Generally employees.

 

Annual Contribution Limit

Generally, for 2018, 100% of pay up to $18,500 ($24,500 if age 50 or older). Special "catch-up" elections may increase the contribution limit.¹

 

Contribution Requirements

Contributions are discretionary each year.

 

Employee Eligibility

Determined by employer's plan.

 

Vesting

Always 100% for employee contributions.

 

Withdrawals

Determined by employer's plan.

 

Loan Feature

No longer offered on Amundi Pioneer 403(b) accounts effective Nov. 1, 2011

 

Plan Administration

Employer.

1 Additional catch-up contributions may be available to participants with 15 years of service with the same employer.

This material is not intended to replace the advice of a qualified attorney, tax advisor, or insurance agent. Before your client makes any financial commitment regarding the issues discussed here, make sure he or she consults with the appropriate professional advisor.