Invest in your future with a traditional or Roth IRA. These tax-advantaged* accounts let you save for retirement while earning competitive interest. Roll your IRA into a CD for further earnings.
$6000 contribution limit per year, $7000 if you are 50 or older.
Funds can be used to purchase CDs within IRA
Variety of IRA terms ranging from 1 year to 5 years
Depositors are FDIC insured up to the maximum allowed by law
*Consult a tax advisor.
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
Income Limits
No income limits to open
Contributions
No minimum contribution requirement
Tax Implications
Contributions are tax deductible on state and federal income tax*
Earnings are tax-deferred until withdrawal (when usually in lower tax bracket)
Distribution
Withdrawals can begin at age 59 ½
Early withdrawals subject to penalty**
Mandatory withdrawals at age 70 ½
Roth IRA
Income Limits
Income limits to be eligible to open Roth IRA***
Contributions
Principal contributions can be withdrawn without penalty*
No age limit on making contributions as long as you have earned income
Tax Implications
Contributions are NOT tax-deductible
Earnings are 100% tax free at withdrawal*
Distribution
Withdrawals on interest can begin at age 59 ½
Early withdrawals on interest subject to penalty**
No mandatory distribution age
*Subject to some minimal conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.