It’s never too early or too late to start saving for retirement — especially when you can save with tax benefits.1

Key Features

  • Tax Advantages1
  • Competitive Interest
  • No Setup or Maintenance Fees
  • Save for retirement with tax advantages1
  • Competitive interest on entire balance
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • Annual contribution limits apply (see current contribution limits)
    • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • CD fixed-rate terms range from 6 months to 5 years; $1,000 minimum deposit to open2
  • 18-month, variable rate IRA; $100 minimum deposit to open2
  • IRA Savings account available; $100 minimum deposit to open3

Please contact us for current rates.

1Consult a tax advisor.

2Penalty for early withdrawal.

3All new accounts are subject to a $10.00 early closure fee if the account is closed within 180 days of opening the account.

There are advantages to both Traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A Traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • Contributions are tax deductible1
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½
  • Earlier withdrawals subject to penalty2
  • Mandatory withdrawals begin for the year turning age 72
  • No age limit on making contributions as long as you have earned income

Roth IRA

  • Income limits to be eligible to open Roth IRA3
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal1
  • Principal contributions can be withdrawn without IRS penalty1
  • Withdrawals of interest can begin at age 59 ½1
  • Early withdrawals of interest subject to penalty2
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

1Subject to conditions. Consult a tax advisor.

2Certain exceptions apply, such as healthcare, purchasing first home, etc.

3Consult a tax advisor.

What is a Traditional IRA?

The original IRA (sometimes called an ordinary or regular IRA) is referred to as a "Traditional IRA." The following are two advantages of a Traditional IRA:

  • You may be able to deduct some or all of your contributions to it, depending on your circumstances.
  • Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed.

You can set up and make contributions to a Traditional IRA if:

  • You (or, if you file a joint return, your spouse) received taxable compensation during the year.

You can have a Traditional IRA whether or not you are covered by any other retirement plan. However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan.

If both you and your spouse have taxable compensation, each of you can set up an IRA. You cannot both participate in the same IRA. If you file a joint return, only one of you needs to have compensation.

What is a Roth IRA?

A Roth IRA is an individual retirement plan that is subject to a different set of rules than a Traditional IRA. The account must be designated as a Roth IRA when it is set up. SEP IRAs and SIMPLE IRAs may not be designated as a Roth IRA.

Unlike a Traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, accumulated earnings and qualified distributions are tax and penalty free.  Generally, withdrawals of accumulated interest are tax-free if it has been at least 5 tax years since your first contribution to your Roth IRA, and you have reached the age of 59 ½.

There are no age restrictions regarding contributions being made, and you can leave amounts in your Roth IRA as long as you live.