Retirement

IRAs are safe and secure ways to plan for retirement. You can choose between a Traditional or Roth IRA.

Traditional IRA - Reduce today's taxable income and defer paying income taxes for anyone under 70 ½ years old.

  • Minimum Balance Required: $1
  • Annual Service Charge: $25

Roth IRA - Make contributions with after-tax dollars so your withdrawals after retirement will be tax free.

  • Minimum Balance Required: $1
  • Annual Service Charge: $25

Which IRA is best for you?

  Traditional IRA Roth IRA
Eligibility You must be under 70½ years old. Available for all ages.
Contribution Limits (2012) $5,000
($6,000 if you're age 50 or older)
$5,000
($6,000 if you're age 50 or older)
Contribution deadline IRAs must be opened by April 15 the prior tax year for previous tax year benefits. IRAs must be opened by April 15 the prior tax year for previous tax year benefits.
Income Limit Anyone is eligible to contribute, but not everyone will receive the tax benefit. Up to $95,000 for Single filers. Up to $150,000 for Married (combined annual income).
Advantages Earnings are tax-deferred until withdrawn. This may help you decrease your taxable income to a lower tax bracket.
No income restrictions.
Tax free withdrawals on the principal and all earnings.
No mandatory distribution age.
No minimum withdrawal requirement.
Disadvantages Withdrawals made before 59½ are subject to a 10% penalty.* Contributions are not deducted from your taxable income.
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*Unless an exception applies