Most experts agree that you will need up to 85% of your pre-retirement income in retirement. An Individual Retirement Account (IRA) is a way to save for retirement and/or supplement your employer-sponsored retirement plan. Consult your tax advisor to see if investing in an IRA could qualify you for a tax credit! 
 
IRA Comparisons 
Traditional IRA 
  • Contributions may be tax-deductible
  • Interest earned is tax deferred
  • No minimum age requirement to contribute; the maximum age to contribute is 70 ½
  • Account holder must have earned income and file a tax return
  • Contribution limits:
  •                   Tax Year             Under Age 50             Age 50 and Over  
                        2013                  $5,500                            $6,500 
                        2014                        $5,500                            $6,500 
     
    Roth IRA 
  • Contributions are not tax-deductible
  • Interest earned is tax-free and penalty free as long as the distributions are qualified
  • No minimum age requirement to contribute; the no maximum age to contribute
  • Account holder must have earned income and file a tax return
  • Contribution limits:
  •                  Tax Year             Under Age 50             Age 50 and Over  
                        2013                        $5,500                            $6,500 
                        2014                        $5,500                            $6,500 
     
    Coverdell Education Savings Account (CESA) 
  • Established for the benefit of a child under the age of 18
  • Contributions are not tax-deductible
  • May contribute $2,000 per tax year
  • Interest earned is tax-free and penalty free as long as the distributions are for qualified educational expense
  • No minimum or maximum age requirements for the contributor
  • The contributor does not have to have an earned income
  •  
     
    Fixed Rate IRA 
  • Available plans: Traditional, Roth, and Coverdell
  • Minimum opening deposit:  $1,000
  • Auto-renewable
  • Annual Percentage Yield (APY) is tied to the corresponding regular CD APY
  • Interest paid by check, deposited to a checking or savings account or compounded
  • No additions allowed until maturity
  • Terms available:
  • 12 months 
    24 months 
    36 months 
    48 months 
    60 months 
  • Early Withdrawal penalties:
  •     12 month term               30 day interest penalty     
        24 month term               90 day interest penalty    
    36-60 month term             180 day interest penalty   
     
     
    18 Month Variable IRA 
  • Available plans: Traditional, Roth, and Coverdell
  • Minimum opening deposit:  $100
  • Auto-renewable
  • Annual Percentage Yield (APY) changes monthly
  • Interest paid by check, deposited to a checking or savings account or compounded
  • Can make additions anytime
  • 90 day interest penalty for early withdrawal
  •  
     
    24 Month First Choice IRA 
  • Available plans: Traditional, Roth, and Coverdell
  • Minimum opening deposit:  $2,000
  • Auto-renewable
  • Annual Percentage Yield (APY) is tied to the regular 2 Year CD APY
  • Your APY can be adjusted one time during the 2 year term upon your written request
  • Interest paid by check, deposited to a checking or savings account or compounded
  • Can make a minimum of $500 deposits to your account at your discretion
  • 90 day interest penalty for early withdrawal
  •  
     
    60 Month Roth IRA (Special) 
  • Available plan: Roth
  • Minimum opening deposit:  $500
  • Auto-renewable
  • Annual Percentage Yield (APY) is tied to the regular 5 Year CD APY
  • Your APY can be adjusted two times during the 5 year term upon your written request
  • Interest paid by check, deposited to a checking or savings account or compounded
  • Can make a minimum of $100 deposits to your account at your discretion
  • 1 year interest penalty for early withdrawal
  •  
     
    Note on interest-bearing accounts: Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks). We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day. Interest rates my change anytime at the bank’s discretion. For current interest rate information Contact Us. 
     


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