Traditional IRA
- Allows for tax-deferred earnings until funds are withdrawn
- Certain contributions may be tax-deductible
- Qualified Certificates of Deposit and Money Market IRA options
Contribution eligibility requirements:
- Must be under age 70½ for entire year when IRA is opened
- Must have earned income, or spouse with earned income in past calendar year
Contribution limits under age 50:
- For 2009 tax year, any amount up to 100% of compensation or $5,000, whichever is less
Contribution limits age 50 or older:
- For 2009 tax year, any amount up to 100% of compensation or $6,000, whichever is less
Remember:
- $5,000 is the aggregate amount that may be contributed to any Traditional and/or Roth IRA for the 2008 tax year
- $5,000 is the aggregate amount that may be contributed to any Traditional and/or Roth IRA for the 2009 tax year
- You may use funds from your other Principal Bank accounts to contribute in either Traditional or Roth IRA
See the IRA custodial agreements (PDF: 235 KB) for additional plan information.
