benefits
- Tax-advantaged retirement savings
- Competitive interest above standard savings rates
- Variable and fixed rates available
- Traditional and Roth IRA options
- No setup fees or monthly fees
- No annual maintenance fees
- Annual contribution limits apply (see current contribution limits; $6,500 as of 2023)
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- $1,000 minimum deposit to open
Traditional ira vs roth ira
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
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax1
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty2
- Mandatory withdrawals at age 72
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- Principal contributions can be withdrawn without penalty1
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penalty2
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
DETAILS
- Minimum of $1,000 to open
- Interest rate tiers based on account balance and current rates.
- Digital Banking available
- No service fee.
1Subject to some minimal conditions. Consult a tax advisor.
2Certain exceptions apply, such as healthcare, purchasing first home, etc.
3Consult a tax advisor.
4Qualified expenses include tuition and fees, books, supplies, board, etc.
5Consult your tax advisor to determine your contribution limit.
6Those earnings are subject to income tax and a 10% penalty.
