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Individual Retirement Account

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 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.

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Tax deductions

You may be able to claim a deduction on your individual federal income tax return for the amount you contributed to your Traditional IRA. If you ARE covered or NOT covered by a Retirement Plan at Work, visit the Internal Revenue Service's (IRS) website to view IRA Contribution and Deduction Limits for the current year HERE. If you and your spouse DO NOT PARTICIPATE in your employer- sponsored retirement plan at work, then your contribution to a Traditional IRA is fully tax deductible.

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 73 (beginning 2023).

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. 

Contributions an employer can make to an employee's SEP-IRA are limited. For current SEP Contribution Limits, visit the IRS website HERE. The percent you contribute must be the same for all participating employees.