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IRAs

Your IRA Investment: It's Your Choice!

 Whatever your retirement goals and needs:

  • You're looking for a Traditional, Roth or Educational IRA
  • You have funds from a previous employer's retirement plan that you
    want to roll into an IRA
  • Or, you have funds from several IRA's that you want to consolidate.

Traditional IRA

Take advantage of tax-deferred earnings and possibly yearly deductions.

Who's it for:

  • You are a taxpayer under the age of 70 1/2 with earned income, or
    you are a non-working spouse.
  • Deductible contributions are more important to you than tax-exempt
    distributions.
  • You would like to supplement your retirement savings in addition to
    your employer's retirement plan.
  • You do not have another IRA or you want to split contributions
    between a Traditional IRA and a Roth IRA.

Check the Rates for IRAs

Learn more about:

Tax Deductions
Tax deferrals
Withdrawals and penalties 
Rollover from an employer-sponsored retirement plan 
SEP (Simplified Employee Pension) IRA

Tax deductions

Your contribution to a Traditional IRA is fully tax deductible if:

  • You and your spouse do not participate in your employer-
    sponsored retirement plan at work.
  • You do participate in an employer-sponsored retirement plan and
    your modified adjusted gross income is under $60,000 as a single
    taxpayer or $80,000 as married filing jointly.
  • You are not covered by an employer's retirement plan, but your
    spouse is, and your joint modified adjusted gross income is no
    more than $150,000.00  

Tax deferrals

You don't pay taxes on earnings or pre-tax dollars in your IRA until you
begin receiving distributions. The required beginning date to receive
distributions is no later than April 1 following the year in which you reach
age 70 1/2.

Withdrawals and Penalties for IRAs

  • Withdrawals with federal additional tax. If you make withdrawals
    before age 59 1/2, these withdrawals may be subject to a 10% federal
    additional tax and possible state taxes. Bank penalties may apply for
    withdrawals from time deposits before maturity. 
  • Withdrawals without federal additional tax. Under certain conditions,
    withdrawals may not be subject to the 10% federal additional tax (for
    example, if you take substantially equal periodic distributions for an
    extended period, or you or a family member is buying a first home or
    going to college). However, the withdrawals are subject to ordinary
    income taxes. Bank penalties may apply for withdrawals from time deposits
    before maturity.

Rollover from an employer-sponsored retirement plan

A Traditional IRA is a good choice for individuals who are changing jobs
or retiring and want to keep their retirement plan distribution invested and
untouched by taxes. By making a direct rollover from your employer-sponsored
plan, you avoid withholding taxes and penalties on the distribution, so more
of your money keeps compounding tax-deferred.

SEP (Simplified Employee Pension) IRAs

A SEP is one of the most effective ways for business owners (and their
employees) to build their retirement savings. It's a good choice for small
businesses, self-employed individuals, and salaried individuals that operate
a business on the side.

Contributions to a SEP for yourself and your employees are tax-deductible
as a business expense. SEP earnings grow tax-deferred until withdrawals begin.
With taxes deferred, your balance may grow faster, potentially giving you more
than you'd have by investing the same amounts in a taxable investment account.

SEPs allow employers to contribute up to 25% of each participant's annual
compensation or $42,000 whichever is less. The percent you contribute must
be the same for all participating employees.