If you meet adjusted gross income guidelines, there is no limit on the number of Roth and traditional IRAs you can own, although your combined annual contributions to all of them cannot exceed the maximum annual contribution limit of $5,000 ($6,000 if you are 50 or older). Your contribution to a traditional IRA may be tax deductible, depending on your adjusted gross income and any participation in an employer-sponsored plan. Funds you place in a Roth IRA are not deductible, but any interest you earn accumulates tax-free and there are no minimum withdrawal requirements.
Did you know that you may be able to take a tax credit of up to $1,000 ($2,000 if filing jointly) for making eligible contributions to an IRA or employer-sponsored retirement plan? The Saver’s Credit is available if you are 18 or older and meet income restrictions. You cannot be a full-time student or be claimed as a dependent. For more information, visit irs.gov, then visit the credit union to open or contribute to your IRA.
