Open a Money Market IRA

While you're saving for your retirement, you can make a deposit anytime into your Money Market IRA. The deposits you make are called "contributions." The annual monetary amount of contributions into an IRA as a whole is capped by the IRS, but a Money Market IRA gives you the freedom to make an unlimited number of deposits on your own schedule up to your applicable contribution limits.^† Visit www.irs.gov to learn more about contribution caps. 

If you have a Traditional IRA, your contributions could be deducted from your taxes and they’re made with pre-tax dollars. Your income, marital status, filing status, and whether you have another retirement plan at work all factor in to if you can deduct your contributions and how much you can deduct. Consult a tax professional if you’re looking at opening a Money Market IRA as a means of lowering your tax burden.

If you have a Roth IRA, the contributions are not tax deductible and they're made with post-tax dollars. Since the taxes on that income have already been paid, your distributions (the amount you get in retirement) are generally tax-free unless paid within initial five-year period or if you are under 59½^†.

Money Market Accounts typically have a high average minimum balance requirement. A Money Market IRA with Huntington can be started with as little as $1 with our competitive rates kicking in when you reach a balance of $2,500 and there’s no monthly fee for the account. The low amount required to open and $2,500 balance threshold for competitive rates allows people of all income levels the ability to invest in their own futures. Investing isn’t just for the wealthy.

The number of deposits to a Money Market IRA is unlimited, however, there are contribution (monetary) limits for an IRA as a whole. The IRS sets contribution limits every year. This limit does not prevent an investor from consolidating retirement assets into a Money Market IRA. Visit www.irs.gov to learn more contribution limits.

It’s possible to consolidate an old 401(k) from a previous employer that’s no longer being actively managed, a lower-yielding IRA, or multiple retirement assets at various financial institutions into an FDIC-insured Money Market IRA. The standard deposit insurance coverage limit is $250,000 for each depositor for all deposit accounts, at each FDIC bank, at each ownership category. Talk to a financial or investment advisor if you want to consolidate your investments and think your principle and earnings will equal more than $250,000.

A withdrawal made before the age of 59 ½ is considered an "early withdrawal". Early withdrawals may have IRS and bank penalties. If you're considering making an early withdrawal from your retirement account, consult your financial or investment advisor and a tax advisor.

The SECURE 2.0 Act was signed into law on December 29, 2022, making numerous changes that affect IRAs. Starting with 2023, one of those changes was to increase the age that required minimum distributions (RMDs) are to begin from age 72 to 73 for IRA owners who were born January 1, 1951, through December 31, 1959. The IRS has now released guidance for IRA sponsors on reporting RMDs for 2023.