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Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)
Summary

Whether retirement is right around the corner or still a ways away, it's never too late or too early to start saving. Enjoy tax-advantaged* savings with an IRA account, at a higher rate than standard savings rates.

There aren't any setup fees or monthly service fees to worry about — so get on the path to a more secure future, starting today.

Benefits

  • Prepare for retirement with tax-advantaged* savings
  • Earn competitive interest at a higher rate than standard savings rates
  • No setup or annual fees
  • No monthly service fees
  • Contribute up to $5,500 per year**
  • Additional $1,000 "catch-up" contribution allowed for ages 50 and older**
  • Interest compounded semi-annually
  • Semi-annual statements
  • Contributions made easily via payroll, checking, or savings
  • FDIC insured up to $250,000
  • Early withdrawal penalties may apply
  • No minimum deposit to open

*Consult a tax advisor.

**As of tax year 2015.

Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.


Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax* Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70 ½

Roth IRA

  • Income limits to be eligible to open Roth IRA*** Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • Principal contributions can be withdrawn without penalty* Withdrawals on interest can begin at age 59 ½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.