Individual Retirement Accounts (IRAs)
IRAs are a popular way to save for retirement because they are tax efficient and easy to open. And best of all, most individuals are eligible to open an account. IRAs can also be an effective way to supplement future social security income and other long term retirement accounts. No matter where you are in your retirement saving, the tax advantages of an IRA can be a great benefit.
While your money is in an IRA, you do not pay current income tax on the interest. This means your money can compound more quickly than in a taxable savings account. No matter what your retirement strategy, we offer a full range of IRA options that are FDIC insured, including savings, money market and CDs to meet your needs.
Choosing the right IRA can depend on several factors, including your current and future income and when you plan to retire. There are two popular types of IRAs: Traditional and Roth. Each has different requirements and benefits. We also offer Rollover, Spousal, SIMPLE and SEP IRAs to meet specific retirement needs.
A tax-deferred savings plan available to all individuals and their spouses with earned income. The deduction for contributions made to a traditional IRA depends on whether the participant and/or the participant’s spouse were covered for any part of the year by an employer retirement plan. When covered by a retirement plan, the deductible amount is also affected by how much income was earned and by the tax return filing status (single or joint). An IRA owner must begin taking required minimum distributions (RMD) from their accounts the year they turn 72.
A retirement savings plan where individuals and their spouses, can continue to make contributions regardless of their age as long as they meet the income requirements. Annual contributions can be made up to the maximum annual limit and are not tax deductible, however the account grows tax free. Qualified distributions, after age 59 ½, are penalty free and tax free. And there are no required withdrawals.
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