stock image of tree-lined road in the fall

Individual Retirement Accounts

There's no time like the present... prepare for your future.  No matter where you are on this journey of life, it is never too late -and certainly not too early- to save for retirement.  We offer Traditional and Roth Individual Retirement Accounts (IRAs) with fixed terms.  Which one is right for you?*

*We recommend seeking the advice of a tax professional when considering your retirement options so you may fully understand the consequences of these choices.
This is the IRA you are used to hearing about.  This classic IRA features:
  • You may get a tax deduction of up to $6,000 in 2021, plus an extra $1,000 catch-up contribution if you are 50 or older.  The tax deduction eligibility depends on your income and other factors.
  • Earnings on a Traditional IRA are not taxed until withdrawn.
  • Withdrawals of principal and interest are taxed when withdrawn, but the delayed taxation usually means a lower tax rate when made after retirement.
  • Early withdrawals come with a steep penalty.  Besides your regular income tax rate, the IRS assesses a 10% early penalty for withdrawals made before age 591/2.
A Traditional IRA is generally preferred for those who anticipate being in a lower tax bracket after retirement due to reduced income.  If your place of employment doesn't offer a retirement plan, a Traditional IRA may be for you, too.
Roth IRAs may be a little less familiar than Traditional.  These accounts feature:

  • Contributions are NEVER tax deductible, but withdrawals from these accounts are tax free.
  • Similar to Traditional IRAs, the maximum annual contribution into a Roth IRA is $6,000 (plus $1,000 if over 50). 
  • Eligibility to contribute to a Roth IRA is based on your income.
  • Withdrawals at any time are tax and penalty free, although withdrawals of earnings before retirement are taxed and penalized with some strict exceptions.
Roth IRAs are generally for those who anticipate being in a higher tax bracket after retirement.  If you might need access to money before retirement, this might be the account for you; however, any tax professional would generally discourage dipping into retirement savings.
We offer the following options for all IRA account types:

Minimum Opening Deposit
18 month*
30 month*

*Early withdrawal penalty of 90 days interest, unless you are at least 59 1/2 years of age.