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Traditional IRA


Plan description

An individual retirement plan that permits tax-deferred savings for workers younger than 70½.

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Key features

  • Contributions are allowed regardless of the individual's adjusted gross income.
  • Contributions may be deductible. Tax deductibility of contributions depends on salary level and whether the IRA owner participates in an employer-sponsored retirement plan.
  • Earnings on both deductible and nondeductible contributions accumulate on a tax-deferred basis.
  • Withdrawals made prior to 59½ will be taxed as ordinary income and may be subject to an additional 10% tax.

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Who can establish

  • Anyone with earned income before the tax year in which 70½ is attained may contribute.
  • For married couples filing jointly, a nonworking spouse may also fund an IRA contribution based on the earned income of the working spouse (up to the annual limit).

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Annual contributions

Please see Retirement Plan Limits for the current compensation and contribution limits for this plan.

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Annual fees

$10 per account1 includes 1099-R and 5498.

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1$10 per account is drafted automatically unless otherwise instructed.

This information does not constitute tax advice. Please consult your tax advisor about your particular situation.

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Invesco AimSM is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund’s prospectus for information on the fund’s subadvisors. Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd.

Consider the investment objectives, risks, and charges and expenses carefully before investing. For this and other information about AIM funds, please obtain a prospectus from your financial advisor and read it carefully before investing.

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

Invesco Aim Management Group, Inc. data unless otherwise noted.

Invesco Aim Distributors, Inc. 12/2008

© 2009 Invesco Aim Management Group, Inc. All rights reserved.