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An Individual Retirement Account provides you with many advantages, the greatest of which is the tax-deferred compounding of investment earnings on your contributions.
Traditional IRA at a Glance
Are you eligible?
If you have earned income and are under age 70 ½, you can contribute up to $5,500 (or 100% of your earned income, whichever is less) each year to a Traditional IRA. Individuals 50 years and older can make an additional "catchup" contribution of $1,000.
Are your contributions deductible?
Your IRA deductions may be fully or partially deductible from your current taxable income depending on two factors: your income level and your status as an active participant in an employer-sponsored retirement plan.
How long can you contribute?
You may contribute to a Traditional IRA until the year in which you attain age 70 ½.
What about withdrawals?
You can take withdrawals from your account at any time and pay current federal income tax.* However, withdrawals prior to age 59 ½ may be subject to a 10% early withdrawal penalty, except in certain circumstances which include:
*Withdrawals must begin by April 1 of the year following the year in which you attain age 70 ½. Keep in mind, your account earnings and any deductible contributions will be subject to federal income taxation at your income tax rate in effect at the time of withdrawal.
Remember, IRAs are designed to help you invest for a financially secure retirement. Money withdrawn for other purposes could impact your ability to reach that important goal.
Not FDIC insured | May lose value | No bank guarantee
An investment in Northern Funds is not insured by the FDIC, and is not a deposit or obligation of, or guaranteed by The Northern Trust Company or any affiliate. An investment in Northern Funds involves risks, including possible loss of principal.
Please carefully read the prospectus and summary prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a prospectus and summary prospectus, which contains this and other information about the funds.
Shares of the Northern Funds are offered only by a current Prospectus and are intended solely for persons to whom shares of US registered funds may be sold. This site shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of shares of the Northern Funds in any jurisdiction in which such offer, solicitation or sale would be unlawful.
©2014 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.