What is an IRA Account
An Individual Retirement Account (IRA) is a personal savings account designed to help you save money for retirement with tax advantages. You can contribute funds each year, and those savings can grow tax-deferred or tax-free depending on the type of IRA. It’s a simple way to plan for your future and build long-term financial security.
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.
Rates & Contributions
| Description | Dividend Rate | APY | Minimum Amount |
|---|---|---|---|
| Roth/ Traditional | 3.00% | 3.05% | $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.
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