Individual Retirement Accounts (IRAs)
You are never too young to begin planning for retirement! Whether you want to travel the world or just enjoy time with the grandkids, our IRAs ensure financial security for your golden years.
IRAs offer a variety of tax advantages and other features in both traditional and Roth IRAs. Talk to one of our friendly experts today and get started right away.
2020 RMD WAIVER FAQ
Q. What types of retirement plans are covered by the 2020 RMD waiver?
A. IRAs (including SIMPLE IRAs and SEP IRAs) and defined contributions plans (such as 401(k) and 403(b) plans) are covered by the 2020 RMD waiver.
Q. Who is eligible for a waiver of the 2020 RMD?
A. IRA owners, including beneficiaries, will not be required to take a 2020 RMD from their IRAs or Inherited IRAs. The RMD waiver also applies to individuals who turned 70½ in 2019 but did not take their RMD before January 1, 2020. The same participants in defined contributions plans are also covered.
Q. What if an IRA owner or beneficiary doesn't want their RMD waived?
A. The CARES Act waives the 2020 RMD, but IRA owners or beneficiaries may always withdraw money from their IRAs or Inherited IRAs as needed. The 2020 RMD waiver simply means that they aren't required to take a minimum distribution in 2020.
Q. What if an IRA owner has already taken their 2020 RMD?
A. If an IRA owner took a distribution in 2020, they may be able to roll over the distribution, but only if it is within 60 days of receiving the distribution, and if all of the other rollover requirements are met.
- Competitive dividends above standard savings rates
- Traditional and Roth IRA options
- No setup fees
- No monthly or annual maintenance fees
- $6,000 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase Certificate within IRA
- $500 minimum deposit to open
Have a plan with another institution? Kemba is happy to help — roll over your balance hassle free. Just contact one of our representatives to get started:
IRA Service Center – 513-762-5070 / 800-825-3622
Visit our IRA Service Center online to learn more.
There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.
- No income limits to open
- No minimum contribution requirement
- Contributions may result in tax savings*
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59 ½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 70 ½
- Income limits to be eligible to open Roth IRA***
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal*
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59 ½
- Early withdrawals on interest subject to penalty**
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
*Subject to certain conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***Consult a tax advisor.
Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life.
- Set aside funds for your child's education
- No setup or annual fee
- Dividends grow tax-free
- Withdrawals are tax-free and penalty-free when used for qualified education expenses*
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an ESA, certain income limits apply**
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- The money must be withdrawn by the time he or she turns 30***
- The ESA may be transferred without penalty to another member of the family
Interested in learning more about opening a Coverdell Education Savings Account?
Click here to contact Octavia Wealth Advisors
Kemba does not open Coverdell IRA accounts. Investment vehicles offered through Octavia Wealth Advisors may be in a form that is not federally insured.
*Qualified expenses include tuition and fees, books, supplies, board, etc.
**Consult your tax advisor to determine your contribution limit.
***Those earnings are subject to income tax and a 10% penalty.