First Hawaiian Bank

Traditional IRA

A traditional IRA is a way to save for retirement that gives you tax advantages.  Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances, and generally, amounts in your traditional IRA (including earnings and gains) are not taxed until distributed.

 

Features of the Traditional IRA:

In 2013, the maximum annual contribution is $5,500 (or $6,500 if you are age 50 or older) or 100% of eligible earned income, whichever is less.  

For your specific situation, please consult your tax advisor.

Who is eligible for deductions?

  • If you and your spouse are not covered by an employer sponsored retirement plan, you will receive a full deduction for contributions regardless of your income.
  • For the 2013 tax year, if you are covered with a retirement plan by your employer, your deduction for contributions will be reduced if your modified adjusted gross income (MAGI) is:
    1. Between $59,000 and $69,000 for a single filer or head of household;
    2. Between $95,000 and $115,000 for married joint filers.
    3. You cannot claim a deduction if your MAGI is above $69,000 for a single filer or head of household and $115,000 for married joint filers.

For your specific situation, please consult your tax advisor.

Who can contribute to a Traditional IRA?

  • Anyone with earned income and is younger than 70-1/2 can contribute to a Traditional IRA.  Annual contributions cannot be made for the year in which you reach age 70-1/2. 

For your specific situation, please consult your tax advisor.

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