Janus
Log In
Log Out
Traditional IRA
The Janus Advantage
 

A Traditional Individual Retirement Account (IRA) allows you to make investments that will grow tax-deferred until you remove money from your account.

Your contributions to a Traditional IRA may be tax-deductible depending on your participation in a workplace retirement plan and certain income limitations.

Is a Traditional IRA right for you?

  • Are you looking for a tax-deferred retirement account?
  • Are you under age 70 1/2 (by December 31 of the tax year in which you are contributing)?
  • Did you receive taxable income during the tax year? If not, you can still invest if your spouse received taxable income and you are filing a joint return.

Tax features

  • Investments grow tax-deferred until you remove assets from your account.
  • Contributions will be fully tax-deductible if you and your spouse are not covered by a workplace retirement plan.
  • If you and your spouse are covered by a workplace retirement plan, please refer to our Traditional IRA tax deductibility table.

Contribution details

  • Individuals: $5,500 or 100% of earned income (whichever is less) for tax years 2013 and 2014
  • Over 50? Make additional "catch-up" contributions of $1,000 for tax years 2013 and 2014
  • To be eligible for the "catch-up" you must have reached age 50 on or before December 31 of the year for which the contribution is being made
  • Your contribution cannot exceed your earned income for that tax year

Investment minimums

  • Minimum initial investment for a Traditional IRA is $500 with subsequent investments of $50 or more per month through an Automatic Investment Program (AIP). The minimum investment is $1,000 without an AIP.

Contribution deadlines

  • You can contribute to a Traditional IRA for a specific tax year starting on January 1st of that year and you must make all contributions for the tax year by the date when your income tax return is due: typically, April 15th of the following year.
  • You cannot make contributions after that date even if you file for an income tax extension.

Fees

  • Janus does not currently charge any custodial account fees for opening or maintaining your Traditional IRA.
  • Many competitors charge $10 or more each year.

Making withdrawals

  • No penalties on withdrawals after age 59 ½. Taking money out of your Traditional IRA prior to age 59 ½ may result in a 10% early withdrawal penalty and the money is taxed as current income.
  • Your IRA's investment earnings will be taxed at your current tax rate during the year money is withdrawn.
  • The tax-deductible contributions in your account will also be taxable at your current rate when money is (or assets are) withdrawn.
  • Any IRA contributions that were not tax-deductible should not be taxable when withdrawn from your account.
  • If you need to remove money prior to 59 ½, check to see if any of these exceptions to the penalty apply.

Required minimum distributions

  • You must begin removing money from your account in the calendar year you reach age 70 ½.
  • Failing to take the minimum distribution will result in a 50% penalty tax on the amount you should have withdrawn-and you still need to withdraw that amount and pay any income taxes due.
  • Learn more about Required Minimum Distributions (RMDs).

Helpful information

  • If you and your spouse are covered by a workplace retirement plan, please refer to our Traditional IRA tax deductibility table.

Get more information right here

The Janus Universal IRA Disclosure Statement and Custodial Agreement provides more complete details about IRA accounts at Janus.

You can convert your Traditional IRA to a Roth IRA. You may also recharacterize your IRA conversion and/or annual contribution from a Roth IRA to a Traditional IRA. Furthermore, you may be required to take a minimum distribution from your Traditional IRA. Janus provides details and forms to complete any of these processes.

Please consider the charges, risks, expenses and investment objectives carefully before investing. Please see a prospectus , or if available, a summary prospectus containing this and other information. Read it carefully before you invest or send money.

A IRA should be considered a long-term investment. IRAs generally have expenses and account fees, which may impact the value of the account. Non-qualified withdrawals may be subject to taxes and penalties. Maximum contributions are subject to eligibility requirements. Depending on your eligibility, you may not be able to contribute the maximum amount. For more detailed information about taxes, consult IRS Publication 590 or your tax adviser regarding your personal circumstance.

Janus funds are offered only to US Citizens (or US Resident Aliens) residing in the United States or a US Territory, and the information on this Web site is intended only for such persons. Nothing on this Web site should be considered a solicitation to buy or an offer to sell shares of any Janus fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

If you're a non-US citizen or resident, please see the non-U.S. funds section of our site.

Tax information contained herein is not intended or written to be used, and it cannot be used by taxpayers for the purposes of avoiding penalties that may be imposed on taxpayers. Such tax information and any estate planning information is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice.

Source: IRS Publication 590

Janus Distributors LLC