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Understanding your retirement options
Whether you are 25 or 55, you may be looking forward to retiring someday. If so you'll need to make sure that you have enough money saved to meet your needs. Your personal goals, plans, and timeframe make a difference in choosing the retirement solution that's right for you. That's why we encourage you to call, click, or come by Commerce today. We'll ask you questions, listen to learn about your situation, and present solutions that will help you meet your specific retirement savings goals.
Which IRA is right for you?
There are a variety of self-directed IRA options, and Commerce Bank can help you determine which one is right for you. Your options may include:
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A tax-deductible, tax-deferred Traditional IRA
With a traditional IRA, you can contribute up to $5,000 per
tax year. Your contribution(s) may be tax-deductible, and any
earnings grow tax-deferred. Distributions are generally taxable
in the year received and may be subject to a 10% early withdrawal
penalty if you are under age 59 1/2. You must be at least 18
and have earned income to open an account.
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A Contributory Roth IRA offering
tax-free growth of investment earnings
With a contributory Roth IRA, You can
contribute up to $5,000 per tax year. Your contributions will
not be tax-deductible; however, earnings grow tax-free, and
distributions are generally tax-free in the year received provided
certain requirements are met. Eligibility to make a Roth
IRA contribution is phased out for individuals with Adjusted
Gross Income (AGI) of between $101,000-$116,000 (and couples
with AGI between $159,000-$169,000). You must be at least 18
and have earned income to open an account.
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A Roth Conversion IRA to take advantage
of tax-free growth of investment earnings
With a Roth Conversion IRA, you can generally
convert (or "roll over") all or a portion of a distribution
from a Traditional IRA. Earnings grow tax-free and distributions
are tax-free in the year received provided certain requirements
are met. Individuals, or married couples filing jointly, with
AGI greater than $100,000 are not eligible to convert. The converted
assets will be taxable in the year that the conversion is completed.
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An IRA Rollover for distributions from employer-qualified
retirement plans
With an IRA rollover, you can roll over any eligible distributions from an employer-sponsored retirement plan. An IRA rollover
is also known as a "conduit IRA" since this IRA allows you to
preserve your right to roll over your savings into another employer-sponsored
retirement plan at some later date. Any earnings grow tax-deferred
and distributions are generally taxable in the year they are
received. Distributions may be subject to a 10% early withdrawal
penalty if you are under age 59 1/2.
What are Your Next Steps?
Commerce Bank, N.A.
Commerce Brokerage Services, Inc.
If you prefer more choices and flexibility in your retirement savings, Commerce Brokerage Services** offers a wide variety of investment*** choices for your IRA, including stocks, bonds, and mutual funds. To learn more, contact a Commerce Brokerage Services, Inc. investment specialist today:
Call us at 816-243-2416 or 800-772-7283
Click here to email Commerce Brokerage Services, Inc. at commercebrokerage@commercebank.com*
Come by and visit using our Broker Locator to find the investment specialist most convenient for you
*To send an email that contains confidential information, please visit the Secure Message center where there are additional instructions about whether to use Secure Email or Online Banking messaging.
** Commerce Brokerage Services, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Commerce Bank, N.A.
*** Investment choices through Commerce Brokerage are NOT the same as savings or checking accounts offered through Commerce Bank N.A.. These investment choices, which include stocks, bonds and mutual funds and other investments are:
not insured by the FDIC;
not a deposit or other obligation of, or guaranteed by, Commerce Bank N.A.;
subject to investment risks, including possible loss of the principal amount invested.
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