Is A Traditional IRA Right For You?

Traditional IRAs allow your assets to grow tax-deferred until withdrawn at retirement. Contributions to a traditional IRA may be tax-deductible (depending on your adjusted gross income), offering you the potential for tax savings today. Money may also be withdrawn penalty-free if it falls within certain guidelines. To help you make a better informed decision about whether or not a traditional IRA is suitable for you, review the key features listed below.

Key features of a traditional IRA

Eligibility

Under age 70½ with earned compensation.

Maximum Annual Contribution Limit

2015 to 2017: $5,500.
(This is the maximum total that may be contributed to all of your IRA accounts annually.)

Catch-up Contributions

Over age 50 (as of the end of the calendar year), you may contribute an additional $1,000 annually.

Tax Advantage

Assets grow tax-deferred without penalties or tax consequences until withdrawal.

Tax Deductibility

The amount of the contribution may be tax-deductible, depending on your adjusted gross income (AGI) and your participation in an employer-sponsored retirement plan.

Full Deductibility

Single: Less than $62,000.
Married Filing Jointly: Less than $99,000 or less.

Partial Deductibility

Single: More than $62,000 but less than $72,000.
Married Filing Jointly: More than $99,000 but less than $119,000.

Distributions

Required minimum distributions must start at age 70½.

Withdrawals

If you are under age 59½ and your withdrawal is not for one of the following reasons, the withdrawal may be subject to a 10% early withdrawal penalty:

  • Death or disability of account owner
  • Part of a series of substantially equal periodic payments
  • Certain major medical expenses
  • Medical insurance premiums while unemployed
  • Qualified first-time home purchase
  • Qualified higher education expenses
  • IRS levy
  • Qualified reservist distribution

Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Select a Fund to view the most recent month-end performance information or go to each fund's snapshot page to view most recent month-end performance as well as any waiver or expense reimbursement information.

The information contained in this piece should not be considered legal or tax advice; questions regarding your specific situation should be directed to your legal or tax advisor.

NOT FDIC INSURED | NO BANK OR FEDERAL GOVERNMENT GUARANTEE | MAY LOSE VALUE

You should consider the investment objectives, risks, charges, and expenses of the PNC Funds carefully before investing. A prospectus or summary prospectus with this and other information may be obtained at 800-622-FUND (3863) or pncfunds.com. Please read it carefully before investing.

PNC Capital Advisors, LLC, a subsidiary of The PNC Financial Services Group Inc., serves as investment adviser and co-administrator to PNC Funds and receives fees for its services. PNC Funds are distributed by PNC Funds Distributor, LLC, which is not affiliated with the adviser and is not a bank.

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 PNC Funds in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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