IRA Accounts

 

An IRA is an account that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis. The 3 main types of IRAs each have different advantages:

• Traditional IRA- You make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow tax-deferred until you withdraw them in retirement. Many retirees find themselves in a lower tax bracket than they were in pre-retirement, so the tax-deferral means the money may be taxed at a lower rate.
• Roth IRA - You make contributions with money you've already paid taxes on (after-tax), and your money may potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.*
• Rollover IRA- You contribute money "rolled over" from a qualified retirement plan into this traditional IRA. Rollovers involve moving eligible assets from an employer-sponsored plan, such as a 401(k) into an IRA.

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Description	Dividend Rate	APY	Minimum Amount	Interest Paid On Minimum Balance
Roth/Traditional	3.00%	3.05%	N/A	$500.00

 

*A distribution from a Roth IRA is tax-free and penalty-free provided that the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, death, disability, qualified first time home purchase. See US Treasury's Website for the latest rules and regulations.

The IRS may apply early withdrawal fees to IRA accounts. In addition, withdrawing a traditional IRA may result in a higher taxable earnings. You may also be assesed a fee for moving your IRA to another financial institution.

Rates may change after account opening.