The Traditional IRA has been around for many years allowing consumers tax-deferred retirement savings while building a nest egg. A Traditional IRA can be established for anyone with earned income who has not reached age 70 1/2 in the current tax year. Currently, the maximum contribution that can be made to a Traditional IRA is $5,000 in a tax year. Individuals over age 50 may be eligible for an additional $1,000 catch-up contribution. These contributions may be tax deductible for many individuals. The eligibility rules for taking a tax deduction depend upon many factors such as income, marital status and participation in an employer-sponsored retirement plan.
Mutual of Omaha Bank offers several certificate of deposit (CD) options for funding traditional IRAs, including fixed rate and variable rate accounts.
