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Traditional IRA

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What's a Traditional IRA?

If you don't actively participate in an employer-sponsored or profit-sharing retirement program, you may be able to contribute and deduct from your taxable income the maximum amount permitted.

One of the benefits of contributing to a Traditional IRA is that contribution may be tax deductible. Whether a contribution or a portion of a contribution is deductible depends on active participation (participating in or receiving contributions) in an employer-sponsored retirement plan, marital status, and modified adjusted gross income (MAGI). Check with your tax advisor about your eligibility.

An IRA owner may contribute to all their Traditional and Roth IRAs up to the lesser of

  • 100 percent of earned income, or
  • $6,500 for 2023 and $6,000 for 2022 (plus catch-up contributions, if eligible).

IRA owners age 50 or older by the end of the tax year may increase their IRA contributions to help "catch up" on their retirement savings, for a total maximum IRA contribution

  • $7,500 for 2023 and $7,000 for 2022

To make a regular Traditional IRA contribution, the IRA owner must

  • Have eligible compensation (generally earned income) equal to or greater than the Traditional IRA contribution amount.

Spousal Contributions

Spousal contributions are a way to make regular contributions to IRAs. An IRA owner who has little or no income can make a regular contribution based on the other spouse's income if the following requirements are met.

  • The couple must be married and file a joint federal income tax return.
  • One spouse must have compensation or earned income equal to or greater than the IRA contribution.
  • The non-compensated spouse must establish an IRA.

The amount of money an individual may contribute per taxable year as a spousal contribution is the same as that for regular IRA contributions ($6,000 for 2022 and $6,500 for 2023, plus catch-up contributions, if eligible).

The 2023 and 2022 MAGI phase-out ranges are listed below:

Filing Status 2023 MAGI 2022 MAGI
Single, head of household or married filing separately (if you didn't live with spouse during year) $73,000-$83,000 $68,000-$78,000
Married, filing jointly or qualifying widow(er) $116,000-$136,000 $109,000-$129,000
Non-Active Participants Married to an Active Participant $218,000-$228,000  $204,000-$214,000 
Married, filing separately (if you lived with spouse at any time during year) $0-$10,000 $0-$10,000

Traditional IRA and Roth IRA accounts are insured separately up to $250,000 from other accounts that are maintained in Meriwest Credit Union. View NCUA's Your Insured Funds brochure for detailed share insurance information.

To open an IRA account or get more information, call (877) 637-4937 or visit one of our Meriwest Financial Centers.

You can discover more options by calling a Meriwest Wealth Advisor directly at 408-866-1002.

Please consult your tax advisor regarding your individual situation.

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Eligibility Requirements

You are eligible to join Meriwest Credit Union if any of the following applies

  • You live, work, worship, or attend school in Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara counties of Northern California, and Pima county of Arizona.
  • You are an employee of a participating Meriwest Credit Union member company.
  • You are a relative of or reside with a current member of Meriwest Credit Union.
  • If you don’t meet any of the requirements above but live in California or Arizona, you can still join Meriwest with a complimentary membership in the Financial Fitness Association. Call 1-877-637-4937 to learn more.
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