Individual Retirement Accounts

The Benefits of an Individual Retirement Account

An Individual Retirement Account (IRA) is a powerful tool for saving for retirement, offering tax advantages that can help grow your investments over time.

Open an IRA Account

Open an IRA Rollover Account

Tax Advantages

Whether you choose a Traditional or Roth IRA, you benefit from tax-deferred or tax-free growth, flexible contribution limits, and the ability to tailor your retirement savings plan to your personal financial situation. Depending on the type of IRA, you may benefit from tax-deductible contributions (Traditional IRA) or tax-free withdrawals (Roth IRA).

Investment Flexibility

Invest in a wide range of assets, including mutual funds, stocks, and bonds, tailored to your retirement goals.

Long-Term Growth

As your contributions and earnings grow tax-free, you have more money to re-invest, which may lead to much greater capital appreciation over time. This phenomenon is known as tax-deferred compounding. Contributions to an IRA can grow over time, taking advantage of compounding returns to help build a more secure retirement.

Choosing Between a Traditional and a Roth IRA

Choosing the right IRA depends on your current financial situation and retirement goals. Learn more about each option to see which is the right fit for you. We also offer Custodial Roth IRA accounts for minors with earned income, and Inherited IRA Accounts.

For more information on IRAs, and how Saturna handles them, download our brochure on Traditional and Roth IRAs. You can also find this brochure in the Further Reading section within this page.

Traditional IRA

Best For: Individuals seeking to reduce their taxable income now, with the potential to lower taxes in retirement.
Tax Benefits: Contributions may be tax-deductible, offering immediate tax relief.
Eligibility: Open to anyone with earned income, with no age limit on contributions from 2020 onwards.
Withdrawals: Penalty-free after age 59½, with required minimum distributions (RMDs) beginning at age 72.

Open a Traditional IRA Account

Roth IRA

Best For: Those who expect to be in a higher tax bracket in retirement or prefer tax-free withdrawals later.
Tax Benefits: Contributions are made with after-tax dollars, allowing tax-free growth and withdrawals.
Eligibility: Open to individuals with income below certain thresholds.
Withdrawals: Tax-free and penalty-free after age 59½ if the account has been held for at least five years. No RMDs during the owner’s lifetime.

Open a Roth IRA Account

Frequently Asked Questions

How much can I contribute to my IRA?

The government periodically adjusts the limits on contributions to both Traditional IRAs and Roth IRAs. The contribution limit is $7,000 for 2025. Any adjustments generally apply to all IRAs, including those for spouses who do not have earned income. A married couple with one wage earner and one person staying at home may be able to contribute a total of $14,000 in 2025 (if they file jointly).

Age 50+ IRA Contributions: Workers age 50 and older (as of the end of the year) are able to make additional “catch-up” contributions on a phased-in basis. For 2025, the annual catch-up contribution limit is $1,000.

Tax year: 2025

Contribution limit: $7,000

Catch up: $1,000

What happens to excess contributions?

Any contribution in excess of the limits stated for Roth or Traditional IRAs are subject to an annual 6% excise tax. This tax is non-deductible. You can avoid the tax by removing the excess (and any earnings on it) before the due date for filing your return for that taxable year (including extensions). No income tax deduction is allowed for the excess. Also, you must include earnings on the excess in your income for the taxable year in which the contribution is made.

If you do not remove the excess contribution, you may apply it against the allowable contribution for the following year (note that this may result in a redemption and repurchase). If so applied, you may be able to avoid the 6% excise tax for future years.

If you have made an excess contribution, please contact a Saturna representative for assistance.

How do I designate or change beneficiaries?

You should designate your beneficiary or beneficiaries on the Application. If you don't designate a beneficiary, your IRA may go into your estate and become subject to both income and estate taxes. A designation won't be valid unless you sign and date it, and we acknowledge it, before your death.

Unless otherwise stated on the designation, amounts payable because of your death:

will be paid to your primary beneficiaries who survive you, in equal shares;
if no primary beneficiary survives you, will be paid to your contingent beneficiaries who survive you, in equal shares; or
if no designated beneficiary survives you, will be paid to your estate.

You can change your beneficiary designation at any time. The most current designation filed with your trustee revokes all prior designations. This provision, and the rights of persons claiming under your beneficiary designation, are governed by your signed IRA Application.

The documents for these processes can be found on the Individual Retirement Account section on our Forms page

Why Choose Saturna?

High-Quality Mutual Funds

Saturna Mutual Funds aim to provide value-driven investors with stable performance in the long term, without compromising on ethical standards. To see how we create and manage our funds, visit our Investment Approach page.

Broad Investment Choices

Diversify with multiple funds and consider self-directed brokerage for more options. See the FAQ section for details.

Knowledgeable, Personalized Service

Representatives with decades of experience at Saturna Capital offer expert guidance to help you make informed investment decisions with support at every step of the way.

Client Resources

Individual Retirement Account Forms

Individual Retirement Account Login

Open IRA Account

Open IRA Rollover Account

¹ Estimates of how much income to replace typically vary from 75% to 95%. A 1981 Report of the President's Commission on Pension Policy suggested 75% to 80%. A 2007 study by Investment Company Institute Senior Economist Peter J. Brady suggested replacement rates of 83% to 103%.
² According to the Bureau of Labor Statistics, the fastest growing segment of workers are those over age 65 – up 25% between 2000 and 2008. Social Security records indicate the average age people begin claiming benefits is 64.
³ Self-Directed Brokerage IRAs may be subject to fees for services not listed in this chart. Please the Saturna Brokerage Services Commission Schedule for more details.
⁴Inactive accounts have effected no trades from January 1 through December 31 and have had one or more security positions for the entire year, not including sweep account money market funds. Please see the Saturna Brokerage Services Commission Schedule for more details.
⁵ Withdrawals may be subject to income taxes, and if taken before age 59½, may be subject to tax penalties.
⁶ While Saturna does not have a specific charge for inbound transfers, the previous custodian may charge for the outbound transfer.
⁷ Qualified higher education expenses include: tuition, fees, books, supplies, and equipment required for the enrollee.

The Amana Funds limit the securities they purchase to those consistent with Islamic principles. This limits opportunities and may affect performance.