Individual Retirement Accounts (IRAs)

• • Tax-advantaged retirement savings*
  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $7,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50 or older
  • Funds can be used to purchase CDs within IRA
  • $25 minimum deposit to open a Variable IRA
  • $1,000 minimum deposit for all other IRA products

*Consult a tax advisor.

There are advantages to both Traditional and Roth IRAs. The biggest difference is a Traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at the time of retirement.

Traditional IRA

• No income limits to open
• No minimum contribution requirement
• Contributions are tax deductible on state and federal income tax*
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59 ½
• Early withdrawals subject to penalty**
• Mandatory withdrawals at age 72 (70 ½ if you reach 70 ½ before January 1, 2020)
• No age limit on making contributions as long as you have earned income

Roth IRA

• Income limits to be eligible to open Roth IRA*
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal**
• Principal contributions can be withdrawn without penalty**
• Withdrawals on interest can begin at age 59 ½
• Early withdrawals on interest subject to penalty***
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

*Consult a tax advisor.

**Subject to some minimal conditions. Consult a tax advisor.

***Certain exceptions apply, such as healthcare, purchasing first home, etc.