Individual Retirement Accounts (IRAs)
It’s never too early to be thinking about retirement. Whether your goal is higher education for your children or retirement for yourself, we offer a product to help you reach your goals.
Traditional
Our Traditional IRA allows you to defer taxes on your earnings until they are withdrawn. Certain contributions into this account are even tax deductible.
We encourage you to contact your tax advisor to discuss your tax deductibility status when making retirement decisions.
Roth
The major benefit of our Roth IRA is tax-free earnings growth.
If you expect to be in a higher tax bracket when you retire, our Roth IRA may be more beneficial to you.
We encourage you to contact your tax advisor to discuss your tax deductibility status when making retirement decisions.
IRA Comparison Chart
|
Details
|
Traditional IRA
|
Roth IRA
|
|---|
| FDIC Insured |
Up to $250,000 |
Up to $250,000 |
|
Contribution Eligibility
|
Earned income in the calendar year |
Earned income in the calendar year |
| Annual Contributions |
Not Required |
Not Required |
| Income Limits |
None |
Set By Eligibility MAGI Thresholds |
|
Maximum Annual Contributions
|
$7,000
$8,000 for those 50 and older
|
$7,000
$8,000 for those 50 and older
|
|
Spousal Contributions
|
Accepted
|
Accepted
|
|
Contribution Due Date
|
April 15 of the next calendar year
|
April 15 of the next calendar year
|
|
Tax Consequences
|
Tax-deferred earning. Contributions may be tax deductible
|
Tax-free distributions at retirement. Contributions are made with post-tax dollars.
|
| Distributions |
If obtained age 72 in 2022 or earlier, continue to take RMDs as scheduled
Anyone obtaining age 72 in year 2023 must begin by April 1, 2025
|
No mandatory disbursements |
Secure Act 2.0 increased the age to start taking RMDs to age 73 in 2023.
Turning 72 in 2023?
Consider when to take your first RMD: Either by December 31, 2024, or delay until no later than April 1, 2025. Remember, if you delay your first RMD to April 1, 2025, you'll need to take 2 RMDs in 1 tax year: Your first by April 1, 2025, which satisfies your required withdrawal for 2024, and your second by December 31, 2025, which satisfies your required withdrawal for 2025.
|
FDIC-Insured - Backed by the full faith and credit of the U.S. Government