Personal Services > IRAs

IRA Options

An Individual Retirement Account (IRA) is a tax-deferred retirement account for employed individuals. As an employed individual, you may already contribute to a employer-sponsored retirement plan such as a 401(k) or 403(b), however, experts say that employer-sponsored plans may not provide income sufficient to meet your needs throughout a full retirement. Even if you are contributing to a plan, you can still open an IRA account through Canandaigua National Trust Company that provides you with additional retirement planning options. We provide you with the information and tools that you need to make the right choice: 

Comparing a Traditional IRA vs. a ROTH IRA

Key Differences

Traditional IRA

Roth IRA

Age Requirements

Must contribute prior to age 70 1/2  


Income Limits

None for non-deductible contributions. Deductible contributions subject to income limits if tax payer is an active participant in an employer-sponsored retirement plan. Must have earned income through employment.

Must have earned modified adjusted gross income below $129,000 for an individual ($127,000 for 2013) or below $191,000 if married filing jointly ($188,000 for 2013).

Tax Advantages


Tax-Deferred Contributions and Earnings

Tax-Free Earnings and Withdrawals

Tax Deductible Contributions

Yes No

Required Withdrawal Age

Required Minimum Distributions (RMD) beginning by April 1 of the year after age 70 1/2


Withdrawal Penalties

A withdrawal processed after the attainment of age 59 ½ is not subject to any withdrawal penalties. However, withdrawals made prior to age 59 ½ may be subject to a 10% early withdrawal penalty.

An exception to the 10% penalty may apply if taken for one of the following reasons:

  • First-time homebuyer expenses   
  • Paying for higher education expenses   
  • Health insurance premiums following unemployment   
  • Certain medical expenses   
  • Result of disability or death   
  • Substantially equal periodic payments   
  • IRS levy

You are able to take withdrawals from your contributions at any time without penalty. A 10% penalty may apply for withdrawals taken from earnings that are not considered to be “Qualified” (see below).

Qualified Withdrawals


Withdrawals from a Roth IRA will be considered “Qualified” and Tax Free if taken after satisfying a 5 year waiting period AND one of the following events occurs:

  • Attainment of age 59 1/2 or older
  • Death
  • Disability
  • First-time homebuyer


Key Similarities Traditional & ROTH IRA

Maximum Contribution Limits for 2014


Individual Account: $5,500 ($5,500 for 2013)

Contribution “Catch Up” Limits for 2014


At or after age 50 (by end of the calendar year), you can make additional contributions of up to $1,000

IRAs for Non-Working Spouse


A non-working spouse is eligible to contribute to an IRA. Contributions are subject to the limits stated above.

P Tarantino  Paul Tarantino
941.366.7222 ext. 50720 

The financial advisors of Canandaigua National Trust Company of Florida (CNTF) offer trust and estate services, investment management solutions, IRAs, and fiduciary services to Greater Sarasota and Florida West Gulf Coast communities.


Canandaigua National Trust Company of Florida is an affiliate of Canandaigua National Bank & Trust. This material is provided for general information purposes only and is not a recommendation or solicitation to buy or sell any particular security, product or service. Investments are not bank deposits, are not obligations of, or guaranteed by Canandaigua National Bank & Trust, or Canandaigua National Trust Company of Florida and are not FDIC insured. Investments are subject to investment risks, including possible loss of principal amount invested. Investments may be offered through affiliate companies.