It’s never too early to start planning for retirement. We make it easy by offering three types of IRA plans for you to choose from. An IRA is a retirement account designed to help individuals save for retirement. Each type of IRA has its own eligibility restrictions based on income and employment status and all have caps on how much money can be contributed each year and IRS penalties for withdrawals before the designated retirement age.

These are our retirement plans:

A Traditional IRA is a way to save for retirement that gives you tax advantages.

Here are some features of this plan:
  • You must have earned income to qualify.
  • You can contribute any amount to a Traditional IRA up to your annual limit.
  • If eligible, you may deduct your annual contribution on your income tax return for the year.
  • Earnings accrue tax-deferred on the investments within your Traditional IRA, potentially increasing your balance.
  • Once you reach age 59-1/2, withdraw as little or as much money as you want IRS penalty-free until age 70-1/2. After age 70-1/2, you must take a minimum distribution each year.

We recommend that you consult with your tax advisor before taking action.

Let us help you open a Roth IRA! A Roth IRA is a way to save for retirement that gives you tax advantages.

Here are some features of this plan:
  • Must have earned income to qualify.
  • Can contribute any amount to your Roth IRA up to your annual limit.
  • Contributions to the Roth IRA are not tax-deductible.
  • Earnings accrue tax-deferred on the investments within your Roth IRA, potentially increasing your IRA balance.
  • Once you reach 59-1/2 and have owned your Roth IRA for five years, your distributions are tax free.

We recommend that you consult with your tax advisor before taking action.

Want to establish a retirement plan for your business, but overwhelmed by the complexity of most plans? Consider a SEP IRA.

Here are some features of this plan:
  • An employer can establish a SEP IRA for his or her employees.
  • The employer is the only one who can make contributions.
  • Self-employed individuals may also establish a SEP IRA.
  • Contribution limits – the lesser of 25% of the employee’s compensation up to a defined compensation cap.
  • Earnings accrue tax-deferred on the investments within the SEP IRA.
  • Can contribute after age 70-1/2 as long as you have earned income.
Advantages of a SEP IRA:
  • Simple to administer and maintain
  • No government reporting
  • Easy-to-understand documents
  • No fiduciary liability for investments
  • Discretionary annual contributions

We recommend that you consult with your tax advisor before taking action.

If you have inherited a Traditional IRA, SEP IRA, SIMPLE IRA or Qualified Employer Retirement Plan from someone other than your spouse, Catholic Life Insurance’s Inherited Traditional IRA may be the right beneficiary option for you.*

By opening an Inherited Traditional IRA at Catholic Life, you can take advantage of options that can reduce your tax liability and can help you grow your funds tax deferred.

Plan Specifics:
  • Individuals who are 14 days old to 85 years of age are eligible to apply.
  • A minimum $25,000 deposit establishes your Inherited Traditional IRA Single Premium Deferred Annuity.
  • We offer competitive interest rates.
  • A minimum guarantee of 1.25% interest rate (annual yield) for the life of the contract.
  • No sales charges or fees.
  • Early withdrawal charges that stop after nine years. They are 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, and 1% respectively.
  • Annual Required Minimum Distributions (RMD) are required each calendar year and are not subject to early withdrawal charges. Additional withdrawals may be subject to early withdrawal charges. Your RMD will be deposited directly into your account annually on the first of the month selected by you.
  • Early withdrawal charges are waived in case of your death.
  • May avoid the costs and delays of probate. When you die, your beneficiary may have immediate access to the annuity.
  • Nursing Home & Cancer/Heart Attack Waiver Provision–This provision waives the early withdrawal charge on partial withdrawals upon confinement to a nursing home, the occurrence of a heart attack or the diagnosis of internal cancer. The partial withdrawal amounts are 50% of the cash value for nursing home confinement and 25% of the cash value for heart attack or cancer. This benefit is only available for issue ages 80 and younger. This provision only applies in policy years 2and later and is limited to a single episode of either: nursing home confinement, heart attack, or cancer.

Please refer to the annuity certificate for additional details of this provision.

Required Minimum Distribution

If you open an Inherited IRA at Catholic Life, you are required to take annual life expectancy payments. This is called a Required Minimum Distribution or RMD. RMDs from an Inherited IRA are not subject to the IRS 10% penalty, even if you are under age 59½. RMDs are taxable as ordinary income.

For more information about the Catholic Life Inherited IRA eligibility, please contact your Agent or the Home Office. We recommend that you consult your tax advisor on specific points of interest to you.