Beneficiary Info to Bring
Traditional IRA
- Defers taxes on earnings until withdrawn
- Certain contributions are tax deductible for the tax year for which they are made
- Required minimum distributions begin at age 72
Roth IRA
- Non-deductible contributions
- Certain distributions are tax free after a 5 year holding period.
- No required minimum distributions
Personal bankers will need to know what year contributions are for, the amount, and what type of IRA you would like to open.
Please consult your tax advisor for advice.
Important Notice for IRAs
A Change to Taxation of Retirement Income in the State of Iowa
Effective January 1, 2023, Iowa taxpayers will catch a break on the state taxes paid on “retirement” income. The new law exempts Iowa taxation on all “retirement income” for those who are disabled or 55+ years old. It also exempts retirement income received by surviving spouses. Retirement income includes, but not limited to:
- 401(k), 403(b), and Individual 401(k) Plan Distributions
- IRA Distributions
- Deferred Compensation Plans
- Pensions (Government & Private)
Client Note: For those of you that currently request withholding Iowa taxes from your IRA distributions, you will want to work with your accountant to determine if you will want to continue withholding. If you choose to change or discontinue state withholding from your IRA distribution in 2023 and beyond, please contact us as soon as possible at 800-423-1602.
Health Savings Account (HSA)
A HSA is an account designed to help you save specifically for health care costs.
Account Requirements
- Must have a qualifying HDHP (High Deductible Health Plan) to open
- Not be enrolled in Medicare
- No other medical coverage
- Not claimed as a dependent on someone else’s tax return
Please consult your tax advisor to see if a HSA is good option for you.
Learning Resources
Health Savings Account Article
If you have a high-deductible plan, you can allocate tax-free income toward your health with a health savings account.
How to Make the Most of your HSA or FSA
Learn the difference between a HSA and FSA, and predict your health care costs.
Financial Wellness Assessment
Use the Financial Wellness Assessment to discover your personal finance strengths and weaknesses.
