INDIVIDUAL RETIREMENT ACCOUNTS (IRAS)

• Save for retirement with tax advantages¹

• Competitive interest above standard savings rates

• Traditional and Roth IRA options

• No setup fees

• No monthly or annual maintenance fees

• Annual contribution limits apply (see current contribution limits; $6,000 as of 2020)¹

• Additional $1,000 "catch-up" contribution allowed for ages 50+

• Funds can be used to purchase CDs within IRA

• FDIC insured

• $500 minimum deposit to open

¹Consult a tax advisor.

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
• Mandatory withdrawals at age 72

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• Principal contributions can be withdrawn without penalty¹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.