Savings

Individual Retirement Accounts (IRAs)

Details

Start saving for retirement early so that you can retire on your terms. Whether you dream of travel, lazy afternoons spent fishing, or memory-filled summers spent with the grandkids, tax-advantaged* savings can help you make those dreams a reality.

We offer both traditional and Roth IRAs. Have a look at the differences between each and pick the account that makes the most sense for your financial goals.

  • Tax-advantaged retirement savings*
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,500 contribution limit per year*
  • Additional $1,000 "catch-up" contribution allowed for ages 50+*
  • Funds can be used to purchase CDs within IRA

*Consult a tax advisor. Limits accurate as of 2015. 

Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement. 

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contribution limits apply*
  • Contributions are tax deductible on state and federal income tax**
  • Withdrawals can begin at age 59 1/2
  • Mandatory withdrawals at age 70 1/2
  • Early withdrawals subject to penalty**

Roth IRA

  • Contribution limits apply*
  • Income limits to be eligible to open Roth IRA*
  • Contributions are NOT tax deductible
  • Principal contributions can be withdrawn without penalty**
  • Tax-free withdrawals on interest can begin at age 59 1/2**
  • Early withdrawals on interest subject to penalty***
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Refer to the IRS website for current limits.

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

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

Coverdell Educations Savings Accounts (ESAs)

Set your children up for success. Start saving for their education early so that when they get to college they can focus on getting the best education — not how they’re going to pay for it.

Interest in this account grows tax-free, and there are no penalties for withdrawal when the money is used for qualified education expenses.* Put tax-advantaged savings to work for your children’s future.*

  • Set aside funds for your child's education
  • No setup or annual fee
  • Interest grows tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses*
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply**
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child
  • The money must be withdrawn by the time he or she turns 30***
  • The ESA may be transferred without penalty to another member of the family

*Qualified expenses include tuition and fees, books, supplies, board, etc.

**Consult your tax advisor to determine your contribution limit.

***Those earnings are subject to income tax and a 10% penalty.