Traditional IRA and Roth IRA Accounts
Invest your savings for safe growth in an IRA account. Choose between a fixed rate on a CDs or a variable rate on a savings accounts.
|Traditional IRA||Roth IRA|
|Tax Deductions||Contributions are fully deductible if you or your spouse are not active participants in an employer sponsored retirement plan. Otherwise contributions are subject to Modified Adjusted Gross Income (MAGI).||Contributions are not tax-deductible.|
|Best for you if:||
You expect to be in a lower income tax bracket in retirement.
You don’t qualify for a Roth IRA because of your income level.
|You anticipate remaining in your current tax bracket, or expect to be in a higher tax bracket after retirement.|
|Eligibility||Under age 70 1/2 with earned income.||Any individual with earned income, subject to Modified Adjusted Gross Income (MAGI) limitations.|
|What can I invest in?||CD or Savings.||CD or Savings.|
|Terms:||CDs maturing between 32 days to 5 years. Savings accounts have no maturity date.||CDs maturing between 32 days to 5 years. Savings accounts have no maturity date.|
|Contribution limits:||Contact your personal banker for contribution limits.||Contact your personal banker for contribution limits.|
|Early withdrawals:||Distributions may be subject to a 10% federal early-withdrawal penalty unless distributions are made for specific qualified purposes (consult a tax advisor).||Withdrawals of contributions are federal income tax-free and penalty-free. Withdrawals of earnings are tax-free and penalty-free if made after five years and contributor is age 59 1/2 or they are used for certain qualified withdrawals (consult a tax advisor).|
|Required minimum distribution||Must begin at age 70 1/2.||Not required at any age for the contributor during their lifetime.|