Early withdrawal will result in forfeiture of three month’s interest. No forfeiture of interest for IRA holders 59 1/2 and older.
With the current law, the maximum contribution to a traditional IRA is $5,500 for tax year 2016 and 2017. An additional $1,000 contribution can be made by qualified individuals over the age of 50. In addition, you will receive a full tax deduction for your contribution if you and your spouse are not covered by an employer sponsored retirement plan. If you or your spouse are participants in an employer sponsored retirement plan, your income and filing status will determine the amount of your deductible contribution.
The following table shows the effect of the modified adjusted gross income (MAGI) thresholds for active participants on deductibility. These thresholds are subject to cost-of-living adjustments (COLAs).