Prepare for the future with an IRA.
No matter how long is left on your journey, it is never too late -or too early- to start saving for retirement. We offer Traditional, Roth, and Beneficiary Individual Retirement Accounts (IRAs). Which one is right for you? Compare IRA account types here and find the one that is right for your situation.*
*We recommend seeking the advice of a tax professional when considering your retirement options so you may fully understand the consequences of those options.
This is the IRA you are used to hearing about. This classic IRA features:
- You may get a tax deduction of up to $6,000 in 2021, plus an extra $1,000 catch-up contribution if you are 50 or older. The tax deduction eligibility depends on your income and other factors.
- Earnings on a Traditional IRA are not taxed until withdrawn.
- Withdrawals of principal and interest are taxed when withdrawn, but the delayed taxation usually means a lower tax rate when made after retirement.
- Early withdrawals come with a steep penalty. Besides your regular income tax rate, the IRS assesses a 10% early penalty for withdrawals made before age 591/2.
A Traditional IRA is generally preferred for those who anticipate being in a lower tax bracket after retirement due to reduced income. If your place of employment doesn't offer a retirement plan, a Traditional IRA may be for you, too.
Roth IRAs may be a little less familiar than Traditional. These accounts feature:
- Contributions are NEVER tax deductible, but withdrawals from these accounts are tax free.
- Similar to Traditional IRAs, the maximum annual contribution into a Roth IRA is $6,000 (plus $1,000 if over 50).
- Eligibility to contribute to a Roth IRA is based on your income.
- Withdrawals at any time are tax and penalty free, although withdrawals of earnings before retirement are taxed and penalized with some strict exceptions.
Roth IRAs are generally for those who anticipate being in a higher tax bracket after retirement. If you might need access to money before retirement, you may want to consider this type of account; however, any tax professional would generally discourage dipping into retirement savings.
Also known as an Inherited IRA, a Beneficiary IRA is an account that is opened when an individual inherits an IRA or employer-sponsored retirement plan after the original owner passes away. Important points to understand for this type of IRA:
- Additional contributions may not be made to an inherited IRA.
- Rules vary for spousal and non-spousal beneficiaries of inherited IRAs.
- The SECURE Act (2019) mandated that non-spousal beneficiaries must deplete the inherited IRAs with 10 years.
Due to the complexity of the rules surrounding Beneficiary IRAs, we recommend seeking the advice of a tax professional when dealing with inherited funds from an IRA.
current offerings and terms
Choose from the following IRA time deposits:
The following terms and conditions apply to all our IRA types:
- Minimum opening deposit of $1,000.
- An early withdrawal penalty (separate from any federal tax penalty) will be charged for withdrawals made before the stated maturity.