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Traditional IRAs

Traditional doesn't mean boring when planning for an enjoyable retirement.

Enjoy tax advantages on deposits you make today.

With a Traditional IRA, you might lower your taxes as you make contributions to your account. You will pay taxes on your earnings when you withdraw funds, which means this IRA can be beneficial if you think you'll be in a lower tax bracket in retirement. Keep in mind, you are required to start taking distributions at age 70 1/2, unless your 70th birthday is July 1, 2019 or later, in which case you are not required to take withdrawals until you reach age 72.

  • Open with a $1,000 minimum deposit
  • Flexible terms ranging from 6, 12, or 18 months to 2 or 5 years
  • Interest compounded and credited to the account quarterly
  • No monthly service fees
  • Earnings are tax-deferred
  • Contributions might be tax-deductible

First Bank and Trust helps customers in Louisiana, Mississippi and Florida save for retirement using Traditional and Roth IRAs with competitive rates of return. Before opening an IRA, please consult your tax advisor for full details about its tax implications. These are some important guidelines about Traditional IRAs.


  • For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs.
  • Spouses with little or no income who file jointly are eligible for a Spousal IRA. If one spouse has little or no earned income, their combined income must be equal to or greater than the total IRA contribution for that year.

Maximum Annual Contribution

  • Individual $6,000 (or taxable compensation)
  • Married filing jointly $12,000 (up to $6,000 each)
  • If you are age 50 or over you can contribute an additional "catch up" contribution of $1,000.
  • For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs.

Tax-Deductibility of Contributions

  • Tax-deductibility is based on retirement plan coverage, adjusted gross income and filing status.


  • Withdrawals can be made at age 59½ without penalty

Qualified Early Withdrawals

Withdrawals before age 59½ are subject to income taxes plus a federal penalty for premature distributions, unless the withdrawal involves one of these criteria:

  • First-time home purchase ($10,000 lifetime limit)
  • Disability of contributor
  • Birth of a child or adoption
  • Medical expenses that exceed 7.5% of your adjusted gross income or 10% if under 65 years of age.
  • Payments of health insurance premiums under certain circumstances
  • Qualified higher education expense