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Individual Retirement Accounts (IRAs)

Summary

Take your future into your own hands by starting an Individual Retirement Account. Invest in yourself by earning competitive interest above standard savings rates. Choose from Traditional and Roth IRA options. Plus, enjoy no setup or maintenance fees. Prepare for the good life today with a $5,000 contribution limit per year. 

Details:

  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase CDs within IRA
  • $10 minimum deposit to open a TDOA; $500 minimum deposit to open a regular IRA.
Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time in 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 tax*
  • Earnings are tax deferred until withdrawal (usually in a lower tax bracket)
  • Withdrawals can begin at age 59 and up
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70 and up

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  • Principal contributions can be withdrawn without penalty**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 and up
  • Early withdrawals on interest subject to penalty***
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income
*Subject to some minimal conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***Consult a tax advisor.