IRAs
An Individual Retirement Arrangement (IRA) is an IRS-regulated retirement plan with special tax benefits and privileges that may save the customer on taxes now and provide significant income at retirement. IRAs provide an effective and flexible way to add to your retirement savings. Select from two different types of IRAs. We offer many different Certificate of Deposit terms, including an 18 Month Variable Rate Certificate of Deposit, as IRA investments.
Traditional IRAs
Now you can use a Traditional IRA to save for higher education expenses and even first-time home purchases ($10,000 lifetime limit) as well as retirement. Spouses who do not participate in an employer retirement plan can deduct all or part of their contributions depending on your income level.
Contributions may be deductible depending on your federal income tax filing status, your modified adjusted gross income and whether you are an active participant in an employer-maintained retirement plan. Traditional IRA owners must begin taking required minimum distributions by April 1st of the calendar year following the year they attain age 70-1/2.
Roth IRAs
The Roth IRA is a non-deductible Individual Retirement Arrangement that offers tax-free, IRS penalty-free earnings on qualified distributions. A distribution from a Roth IRA is considered a “Qualified Distribution” if you are over age 59-1/2, become disabled or are a first-time home buyer and your money has been in a Roth IRA for at least five years. Distributions are not required during your lifetime.
You can make contributions at any age, but there are income limits that affect the amount you are permitted to contribute. Contributions are not tax-deductible.
Coverdell Education Savings Accounts
Help save for your child, step-child, grandchild, niece or nephew’s future by opening a Coverdell Education Savings Account. Your non-deductible contributions earn tax deferred interest while in the account. Distributions could be tax free if they are used for qualified education expenses.
Individual Retirement Accounts and Coverdell Education Savings Accounts are subject to Federal Rules and Regulations, see your account documents for details.
FOR MORE IMPORTANT INFORMATION, PLEASE REFER TO OUR “ACCOUNT TERMS” AND “FEE SCHEDULE”.
