Features & Advantages

Whether you choose a traditional or a Roth IRA from Thrivent Financial Bank, each offers several advantages.

Traditional IRA Advantages¹

• Contributions – As long as you've earned income, you may contribute up until the tax year in which you reach age 70½. You may also contribute for a non-wage-earning spouse. In 2012, you can contribute up to $5,000 per year, if you are age 50 and older by the end of the tax year, you can contribute an additional $1,000.
• Tax Benefits – You may be able to fully deduct your contributions on your tax returns (limits may apply if you or your spouse participates in an employer-sponsored plan). Any earnings are tax deferred, but you pay taxes at withdrawal.
• Distributions – Though it will always be subject to ordinary income tax, you may withdraw money at any time. However, if you withdraw money before you reach age 59½, you may also incur an IRS 10% early distribution penalty unless an exception applies. Exceptions include:
  • First home purchase.
  • Education expenses.
  • Series of payments based on life expectancy (Substantially Equal Periodic Payments).
  • Eligible unreimbursed medical costs.
  • Total and permanent disability.
  • Payment of account assets upon your death.
  • Medical insurance premiums while unemployed.
  • IRS levy.
  With traditional IRAs, you must begin taking withdrawals at age 70½.

Roth IRA Advantages¹

• Contributions – Anyone who meets the guidelines for modified adjusted gross income may contribute to a Roth at any age.² There is no tax deduction for your contributions.
• Tax Benefits – Any earnings are tax deferred and distributions may be totally income tax free, assuming they meet the criteria below.
• Distributions – Distributions of your contributions are always income tax free and can occur at any time. Distributions of earnings are also income tax free if your Roth IRA is at least five years old and if made for one of these qualifying reasons:
  • Attainment of age 59½.
  • First home purchase.
  • Death or disability.

Open an Individual Retirement Account

Account Features

Thrivent Financial Bank offers you two convenient savings vehicles for your IRA – savings accounts and certificates of deposit (CDs).

¹ This information is not intended and should not be construed as legal, investment or tax advice. Please consult your attorney, tax advisor or other appropriate professional for such advice, including advice regarding the benefits of an IRA, the deductibility of contributions and advice on how this information applies to your individual circumstances. Thrivent Financial Bank cannot and does not guarantee the accuracy or completeness of this information or its applicability to your individual circumstances and does not bear any liability as a result of your reliance on this information.

² In order to invest in a Roth IRA you must meet certain income guidelines. In 2012, your adjusted gross income (AGI) must be:

• If you are single – Up to $110,000 for 2012 (for the full contribution); $110,000 to $125,000 for 2012 (for a partial contribution somewhat less than the maximum).
• If you are married and file jointly – Up to $173,000 for 2012 (for the full contribution); $173,000 to $183,000 for 2012 (for partial contribution).
• You can make contributions, even after age 70½, if you have earned income and meet the income guidelines.
• Funds can be withdrawn without an early withdrawal federal penalty tax for a first-time home purchase or for higher-education costs. The earnings may be taxable, unless the qualified-distribution rules are met.