Individual Retirement Accounts (IRA)

• Competitive dividends above regular savings rates
• Traditional and Roth IRA options
• No setup charges
• Annual Admin service charge of $20
• $6,000 contribution limit per year
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase certificates of deposit within IRA
• $5 minimum deposit to open

Traditional IRA

Money deposited can be used as a tax deduction or is funded from money that has never been taxed, such as pensions or a 401(k).

• No income limits to open
• No minimum contribution requirement
• Contributions are tax deductible on state and federal income tax¹
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59½
• Early withdrawals subject to penalty²
• Mandatory withdrawals at age 72 (effective 1/1/2020) This change impacts the RMD requirement for individuals who turn age 70½ in years 2020 or later (IRA owners with a date of birth of July 1, 1949 or later). The SECURE Act, signed into law 12/20/2019.

Roth IRA

Money deposited cannot be used as a tax deduction. Money funded in the Roth IRA has already been taxed. Traditional IRA funds can be converted to a Roth; however, taxes are required to be paid.

• Income limits to be eligible to open Roth IRA³
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal¹
• Principal contributions can be withdrawn without penalty¹
• Withdrawals on interest can begin at age 59½
• Early withdrawals on interest subject to penalty²
• No mandatory distribution ages
• No age limit on making contributions as long as you have earned income(must be at least 18 to open Roth IRA)