Investor Resources
As an owner of a self-directed IRA it is your responsibility to investigate each and every investment you select and/or hold within your IRA. Consult adequate legal, tax, or investment professionals for assistance and make sure you understand:
- What you are investing in
- How much risk is involved
- Who you are investing with
- Why the investment is suitable for your IRA
CNB does not provide legal, tax, or investment advice. CNB does not offer, sponsor or endorse any investment products other than CNB certificates of deposit and is not affiliated with any investment sponsor, issuer, or financial representative.
Investor Resources
Community National Bank wants to help protect our account owners from fraudulent information. When deciding about investment options for your IRA(s) please consult with your representative and utilize the resources below.
Please use the following resources at your discretion. CNB is not responsible for any content that does not appear on our website.
Consumer Fraud Protection
Investor Education
Congress created Individual Retirement Arrangements (IRAs) in the 1970s to encourage individuals to save money for their retirement. The Traditional IRA has gone through numerous changes over the years but still remains a viable option for many people. The Roth IRA became available in 1998 and opened up additional doors for retirement savings including the potential for tax-free earnings.
Why do you need a custodian for your IRA?
Since Congress is providing certain tax incentives for saving money through an IRA, an IRA must meet Internal Revenue Code requirements, which include the use of a bank or other entity approved by the IRS to act as either trustee or custodian. A custodian is required to perform record keeping that tracks the activity within the account, produce statements for the account owner showing the activity and status of the account, and provide tax reporting of contributions, distributions, and fair market value to the account owner and the IRS.
Why do you need Community National Bank?
While almost every mutual fund company, annuity provider, bank and brokerage house will provide custody services for IRAs, few will custody the broad myriad of investments that are allowed within a self-directed IRA at Community National Bank (CNB). With a self-directed IRA at CNB, you can hold both public and private stocks & bonds, mutual funds, annuities, certificates of deposit, REITs, UITs, limited partnerships, private placements, and other non-standard investments. You can consolidate your IRAs in one account while retaining diversification of assets and using an investment advisor of your choice.
IRA Terms Glossary
IRA (Traditional & ROTH) Contribution Limits
With the passage of EGTRRA, came higher contribution amounts in addition to a $1000 catch-up contribution for those individuals age 50 and over. The contribution limit is an aggregate limit per year for Traditional and Roth IRAs.
*This information is for educational purposes only. For further information on IRAs, please consult IRS Publication 590 or your tax, legal and/or financial advisor.
| Tax Year | Standard Limit: | Catch-Up Amount for Ages 50 & Over: | Total for Age 50 & Over: |
|---|---|---|---|
| 2024 | $7,000 | $1,000 | $8,000 |
| 2025 | $7,000 | $1,000 | $8,000 |
Traditional IRA Information
Annual contributions to a Traditional IRA may be tax deductible depending on the Modified Adjusted Gross Income (MAGI) of the individual and whether or not they are covered by an employer’s retirement plan. (Please consult the following chart.) Earnings accumulate tax-deferred until withdrawn, at which time they are taxed at the ordinary tax rate of the individual. Individuals may contribute up to 100% of earned income or the maximum allowed, whichever is less. Traditional IRA owners must begin removing funds from their IRA at age 73.
*Eligible to make contributions but cannot deduct fully depending upon MAGI.
Single Filers Who Are Active Participants
Allowable IRA Deduction
| Tax Year | Full Deduction for a MAGI of: | *Partial Deduction for a MAGI between: | *No Deduction for a MAGI of: |
|---|---|---|---|
| 2024 | Less than $77,000 | $77,000 - $87,000 | More than $87,000 |
| 2025 | Less than $79,000 | $79,000 - $89,000 | More than $89,000 |
Active Participants That Are Married and Filing Jointly
Allowable IRA Deduction
| Tax Year | Full Deduction for a MAGI of: | *Partial Deduction for a MAGI between: | *No Deduction for a MAGI of: |
|---|---|---|---|
| 2024 | Less than $123,000 | $123,000 - $143,000 | More than $143,000 |
| 2025 | Less than $126,000 | $126,000 - $146,000 | More than $146,000 |
Roth IRA Information
Roth IRAs became available in 1998 as a result of the Taxpayer Relief Act of 1997. The biggest difference from the Traditional IRA is the potential for tax-free earnings. Roth contributions are not tax deductible, but earnings may be tax-free if withdrawn for qualified reasons. (See charts or consult IRS Publication 590 or other materials for more information.)
* A 10% penalty will apply to converted funds withdrawn in the first five years. If conversions are done in more than one tax year, each conversion will have a separate five-year clock.
Roth IRA Single Filers
Allowable Contribution Amount
| Tax Year | Full Contribution for a MAGI of: | Partial Contribution for a MAGI Between: | No Contribution for a MAGI of: |
|---|---|---|---|
| 2024 | Less than $146,000 | $146,000 - $161,000 | More than $161,000 |
| 2025 | Less than $150,000 | $150,000 - $165,000 | More than $165,000 |
Roth IRA Married, Filing Jointly
Allowable Contribution Amount
| Tax Year | Full Contribution for a MAGI of: | Partial Contribution for a MAGI Between: | No Contribution for a MAGI of: |
|---|---|---|---|
| 2024 | Less than $230,000 | $230,000 - $240,000 | More than $240,000 |
| 2025 | Less than $236,000 | $236,000 - $246,000 | More than $246,000 |
Simplified Employee Pension Plan - SEP Information
A SEP is a business retirement plan established and administered by the employer. It allows the employer to take a tax deduction for contributions made to his/her employees’ Individual Retirement Accounts (IRAs).
Contributions are discretionary each year and may range from 0 to 25% of compensation. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) raised the maximum compensation limit to $200,000, beginning in 2002 with adjustments of $5,000 annually if the COLAs warrant it.
The contribution percentage must be the same for the employer and all eligible employees. Once the funds are deposited in the Traditional IRA, they become subject to the standard IRA rules and regulations. The contributions plus earnings are taxable to the IRA account owner upon withdrawal and may be subject to a 10% penalty if withdrawn prior to reaching age 59.5.
*The contribution limit is the lesser of 25% or the dollar amount shown.
| Tax Year | Standard Limit | Maximum | Minimum |
|---|---|---|---|
| 2024 | $69,000* | $345,000 | $750 |
| 2025 | $70,000* | $350,000 | $750 |
Uniform Life Table
| Age | Distribution Period | Age | Distribution Period |
|---|---|---|---|
| 72 | 27.4 | 80 | 20.2 |
| 73 | 26.5 | 81 | 19.4 |
| 74 | 25.5 | 82 | 18.5 |
| 75 | 24.6 | 83 | 17.7 |
| 76 | 23.7 | 84 | 16.8 |
| 77 | 22.9 | 85 | 16.0 |
| 78 | 22.0 | 86 | 15.2 |
| 79 | 21.1 | 87 | 14.4 |