Individual Retirement Accounts (IRAs)
An IRA or Certificate of Deposit IRA is a great way to start saving for retirement. We can help you manage your existing account or consolidate accounts to fit your retirement plans.
Traditional IRA
Traditional Individual Retirement Accounts (IRAs) allow individuals to deposit pre-tax income into investments that can grow in a tax-deferred environment. Usually, no capital gains or dividend income taxes are applied until you make a withdrawal. Individual taxpayers can contribute from qualified earned compensation. Here are some things to keep in mind about traditional IRAs:
- Contributions may be tax deductible
- Pre-tax contributions and any earnings are taxable when withdrawn
- Withdrawals after age 59½ avoid IRS penalty
- Minimum required distributions start at age 70½
Roth IRA
A Roth IRA is a flexible option to save for retirement. Contributions are made with after-tax dollars, but earnings on those contributions can grow tax-free and be withdrawn tax-free as you near retirement. Here are some points to consider before you invest:
- Contributions are not tax deductible
- Your money grows tax-free in the account
- You can withdraw your money tax-free in retirement (conditions apply)
- You can withdraw your own contributions at any time without IRS penalty
Which type of IRA is right for you?
Talk to us!
Contact our banking team to determine the retirement investment strategy that’s right for you.