Traditional IRA
A traditional IRA (individual retirement arrangement) is a personal savings account that helps you save for retirement and grow earnings tax-deferred until withdrawal. Many investors save in an IRA in addition to their employer-sponsored plan. A Commerce Financial Advisor can help you compare a traditional IRA to a Roth IRA to determine which approach is best suited to your situation.
Features
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Contributions can be tax-deductible or non-tax-deductible. (Consult with your tax advisor.)
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Earnings grow tax-deferred until withdrawn after age 59½, at which time they are taxed at your current rate.
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A wide range of investment options is available

Considerations
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Minimum annual withdrawals are required when you reach age 72 (known as required minimum distributions).
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Your ability to make deductible contributions may be reduced or eliminated if you are covered by an employer-sponsored retirement plan and varies based on your income.
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Beneficiaries pay income tax on proceeds after your death.
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Most may convert a Traditional IRA to a Roth IRA.
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IRS penalties may apply to withdrawals prior to age 59 ½
Tax Considerations*
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Your deduction is allowed in full if you (and your spouse, if you are married) are not covered by a retirement plan at work.
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Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels.

Eligibility
- Anyone who has earned income equal to or greater than their IRA contribution amount.
- If you contribute to an employer-sponsored plan such as a 401(k) you may still be eligible to contribute to a Traditional IRA.
- If you have no earned income but your spouse earns enough income to cover your contribution as well as his or her own, you can contribute to a Traditional IRA.
Income Limits
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No limits for nondeductible contributions
Type of Investments
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Stocks, bonds, mutual funds, exchange-traded funds (ETFs), U.S. Treasuries, Brokered CDs, unit investment trusts (UITs), and annuities
Annual Contribution Limits
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$6,500 under age 50
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$1,000 additional catch-up contribution if age 50 and over
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You may contribute simultaneously to a Traditional IRA and a Roth IRA (subject to eligibility) if the total contributed to all (Traditional and Roth IRAs) does not exceed described limits.

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Securities and Advisory services provided through Commerce Brokerage Services, Inc., member FINRA, SIPC, and a registered investment advisor. Insurance products are offered through Commerce Insurance Services, Inc. Both entities are subsidiaries of Commerce Bank.
Investments in securities and insurance products are Not FDIC insured; Not Bank-Guaranteed and May Lose Value.
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