Individual Retirement Accounts (IRAs)

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• Save for retirement with tax advantages¹
• Competitive interest above standard savings rates
• Traditional and Roth IRA options available
• No setup fees, monthly or annual maintenance fees
• Annual contribution limits apply
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase CDs within IRA
• $1,000 minimum deposit to open (IRA CDs)
• Money Market IRAs also available

¹Consult a tax advisor.

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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
• Contributions are tax deductible on state and federal income tax¹
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59½
• Early withdrawals subject to penalty²
• Required Minimum Distributions (RMDs) at age 70½.  Due to changes made by the 2019 SECURE Act, if your 70th birthday is July 1, 2019 or later, you do not have to start taking required distributions from your Traditional IRA until you reach age 72.  Starting in 2023, the Secure 2.0 Act of 2022 raises the age at which participants must begin taking distributions.  For individuals who turn 72 after 2022, the age increases to 73.  For individuals who turn 74 after 2032, the age increases to 75.

Roth IRA

• Income limits to be eligible to open Roth IRA³
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal¹
• Principal contributions can be withdrawn without penalty¹
• Withdrawals on interest can begin at age 59½
• Early withdrawals on interest subject to penalty²
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

¹Subject to some minimal conditions. Consult a tax advisor.

²Certain exceptions apply, such as healthcare, purchasing first home, etc.

³Consult a tax advisor.