Individual Retirement Accounts (IRAs)

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Proper planning puts you on the path toward a truly enjoyable retirement. Make the most of tax-advantaged savings now to ensure that when the time comes, you’re ready!

We offer both Traditional and Roth IRAs. Have a look at the differences between the two and pick the plan that makes the most sense for your situation. 

Summary
  • Tax-advantaged retirement savings*
  • Competitive interest above standard savings rates
  • Traditional, Roth, and SEP IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,500 contribution limit per year (as of 2017)
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase CDs within IRA
  • Minimum deposits to open vary:
    • $500 minimum deposit requirement on 91 days
    • $1,000 minimum deposit requirement on terms greater than 91 days

* Consult a tax advisor

Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. 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
  • Contribution limits apply*
  • 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 and a half
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70 and a half

Roth IRA

  • Contribution limits apply*
  • 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  • Principal contributions can be withdrawn without penalty**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 and a half
  • Early withdrawals on interest subject to penalty***
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income
*Refer to the IRS website for current limits.
**Subject to some minimal conditions. Consult a tax advisor.
***Certain exceptions apply, such as healthcare, purchasing first home, etc.
Simplified Employee Pension Plan (SEP)

Business and self-employed individuals are eligible to open SEP IRAs. An SEP IRA is low maintenance and requires less paperwork than a 401k.  Here’s how it works: Employees establish a traditional IRA, then the employer deposits contributions.*

Employers can change their contribution amounts at any time, so there’s the flexibility to adjust contributions as cash flow varies. Take advantage of hassle-free retirement savings today.

  • Ideal for businesses of any size or self-employed individuals
  • Help employees reach their retirement savings goals
  • Employee always has complete ownership of all SEP IRA money
  • Earn competitive interest on entire balance
  • Contributions are tax deductible; your business pays no taxes on earnings**
    • Contributions made only by the employer
    • Only self-employed may make contributions on their own behalf
  • Little to no documents to file with government
  • Inexpensive to set up and operate
  • Flexible annual contributions — good plan if cash flow is unpredictable
  • Can contribute up to 25% of each participant's annual compensation (earned income)
    • Or, up to the maximum allowable limit for current plan year, whichever is less*
    • Must contribute equally for all employees
  • Employee must first establish a traditional IRA, in which the employer will deposit SEP contributions
  • Minimum deposit to open an SEP depends on the term:
    • $500 minimum deposit requirement on terms of 91 days
    • $1,000 minimum deposit requirement on terms greater than 91 days
*Refer to the IRS website for current limits.
**Consult a tax advisor.