Individual Retirement Accounts (IRAs)

Contributions to the Traditional IRA may be tax deductible (consult with your tax advisor). In other words, you can use “pre-tax” dollars to make contributions to this account. Earnings will not be taxable during the life of the IRA, but only when drawing money from the account.

 

When you retire and withdraw this money, you may pay a lower tax on this income than when employed and earning a higher salary. If it becomes necessary to withdraw money from this account before age 59½, a penalty may be charged. Periodic payments must begin from the Traditional IRA at the age of 70½. (Note- The Worker, Retiree and Employer Act of 2008 waives the required minmum distributions for 2009.)

 

Roth contributions are not tax deductible, meaning your contributions are in “after-tax” dollars. Qualifying withdrawals are tax-free. Owners of this type of IRA must hold this account for a period of five years and meet one of the several criteria to make penalty-free, tax-free withdrawals of both contributions and earnings.

 

(ESA - previously known as the Educational IRA)
This account can be opened for children under the age of 18 to help plan for college. Contributions are nondeductible, but earnings are tax-free upon withdrawal if used for educational expenses before the child’s thirtieth birthday.

 

For all of our IRAs there are several investment options available. Please contact a Member Service Representative at a branch near you.