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Traditional Individual Retirement Account

When it comes to growing your nest egg, finding the right retirement plan is an important step toward a secure financial future. At Columbia Bank, we're dedicated to helping you plan for that future. That's why we offer the tax-advantaged traditional IRA. This investment solution allows you to save for retirement with one of the largest mutual financial banks in New Jersey.

  • You can open or fund your IRA at anytime until your federal tax return is due.  Normally, by April 15.
  • The maximum allowable IRA contribution for tax year 2016 is $5,500. ($6,500 for individuals age 50 and older)
  • Allows individuals to enjoy tax-deferred interest while saving for retirement.
  • IRA contributions are tax deductible for individuals who are not active participants in qualified retirement plans.
  • For active qualified plan participants, a tax deduction may be available - depending on income levels and marital status.
  • Direct Rollover IRA allows an individual to retain tax-deferred status when rolling over funds from a qualified retirement plan, like a pension plan or 401K plan.  
  • Beginning January 1, 2015 the Internal Revenue Service allows you to make only one tax free IRA-to-IRA rollover during a 12 month period.  This new limit applies no matter how many IRAs you own or where you hold them.  
  • You can make unlimited trustee-to-trustee direct transfers between IRAs.
  • A taxable distribution from your traditional IRA prior to attaining age 59 ½ may be subject to IRS 10% early distribution penalty.  The 10% penalty will not apply if an exception applies.
  • IRA distributions are not subject to IRS penalty after attaining age 59 ½.
  • Minimum required distributions must start at age 70 ½.
  • After attaining age 70 ½ you are not allowed to make contributions to a Traditional IRA.
  • IRA funds grow at a faster rate because IRA earnings are tax deferred.

Calculate what your nest egg will be with our online retirement planning calculator, or contact Columbia Bank today to speak with a representative about traditional IRAs.