Retirement Accounts
Santa Cruz County Bank is pleased to offer many options for retirement planning. A retirement account is an excellent tool for retirement savings. Depending upon the type of Retirement Account you choose, contributions may be tax deductible and will grow either tax-free or tax-deferred. We can assist you with the rollover or transfer of an existing retirement plan or you can open a new one. For more information about our retirement plans, rates, and maintenance fees, please visit any of our banking locations. To set up an appointment, please call Shirley Hennessey at 457-5003 ext. 2128.
Contribution limits for retirement plans
Traditional & Roth IRA Contribution Limits
| Year | Age 49 & Below | Age 50 & Above |
|---|---|---|
| 2012 | $5,000 | $6,000 |
| 2011 | $5,000 | $6,000 |
Traditional IRAs can be opened & funded by the tax filing deadline including extensions to receive tax deduction on the prior year's earnings. Roth IRAs can be opened and funded by the April 15th tax filing deadline.
Roth IRA Phase Out Range & Limits
| Year | Single | Married Filing Jointly |
|---|---|---|
| 2012 | $100,001- $125,000 | $173,001- $183,000 |
| 2011 | $107,000- $122,000 | $169,000- $179,000 |
You can contribute to a Roth IRA if your income falls below the Roth limits. You are allowed a prorated contribution if your income falls within the "phase-out" range. If your income exceeds the income range you will not qualify for the Roth IRA contribution.
Coverdell Educational Savings Account
| Year | Annual Contribution Amount Per Beneficiary |
|---|---|
| 2012 | $2000 |
| 2011 | $2000 |
Educational Savings accounts must be opened and funded by April 15th tax filing deadline.
Self Employed and Employer Sponsored Retirement Plans
SEP IRA Limits
| Year | Max % of Compensation | Max Dollar Allocation | Max Compensation |
|---|---|---|---|
| 2012 | 25% | $50,000 | $250,000 |
| 2011 | 25% | $49,000 | $245,000 |
The maximum amount that can be contributed to a simplified employee pension (SEP) plan is 25% of an employee's compensation, which is capped at a maximum, per above. Consult your Tax Specialist for specific information.
Simple IRA Limits
| Year | Age 49 & Below | Age 50 & Above |
|---|---|---|
| 2012 | $11,500 | $14,000 |
| 2011 | $11,500 | $14,000 |
Both Simple and SEP IRAs can be opened by the tax filing deadline including extensions.
Your retirement savings at Santa Cruz County Bank are FDIC insured up to $250,000!
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