Individual Retirement Annuities (IRAs)

In this case, IRA stands for Individual Retirement Annuities rather than Individual Retirement Account. An IRA can also be established with an annuity provider and build an annuity-based plan There is the same limitations to the annual investment cap that applies to all IRAs (except rollovers), and there is the same requirement to begin withdrawing at age 70½ . The Internal Revenue Service sets specific restrictions regarding Individual Retirement Annuities which are not met by all annuity products. Consult with our planners and financial specialists to learn more.

The contribution cap for Individual Retirement Annuities was $3,000 for 2002 through 2004. It increased to $4,000 for 2005 through 2007, and reaches $5,000 in 2008. Since year 2002, for those who are age 50 or older, there has been a provision to make annual catch-up contributions each year. Our planners and financial specialists can help you learn more about this provision.

A tax deduction for the contribution amount might be available for those who aren’t eligible for an employer-sponsored retirementplan or for those whose income is less than the current ceiling for deductibility. However, be sure to consult with your tax advisor, and talk to our planners and financial specialists, before setting up the plan.