Individual Retirement Accounts (IRA'S)
IRAs are accounts that allow individuals options on saving for retirement. Depending on your age and employment, you can have either a Traditional or Roth IRA.
Both IRA Accounts include:
- $50 minimum deposit to open account.
- $50 minimum balance to earn APY.
- IRAs automatically renew.
- In certain circumstances, such as required distributions, an IRA penalty may be waived.
- We offer 18-Month Fixed or Variable rate IRAs.
The interest rate and annual percentage yield (APY) may change on the variable rate IRA after the account is opened. We may change the rate on these accounts at our discretion at any time.
Traditional IRAs
- Contributions can be tax deductible - see your tax advisor for additional information.
- Interest is tax deferred, meaning you don't need to report it unless the funds are taken out prematurely.
- Account holders cannot withdraw funds before age 59 1/2 without a 10% penalty imposed by the IRS - see your tax advisor for additional information.
- Withdrawal amounts are subject to income tax, regardless of age.
- Individuals with a Traditional IRA cannot make contributions over the age of 70 1/2.
- Individuals with a Traditional IRA are required to take annual distributions upon reaching the age of 70 1/2. The required minimum distribution depends on the account holder's Age.
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Roth IRAs
- Contributions to a Roth IRA are NOT tax deductible.
- All interest earned on a Roth IRA is Tax-deferred.
- Depending on the circumstances account holders cannot withdraw funds before age 59 1/2 without a 10% penalty by the IRS - see your tax advisor for additional information regarding the 5-Year Tax Rule, contributions and distributions.
- Individuals with Roth IRA can continue to contribute to their ROTH IRA even after age 70 1/2.
- Individuals with Roth IRA are NOT required to take minimum distributions at age 70 1/2.
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