Individual Retirement Accounts (IRAs)

• Save for retirement with tax advantages¹
• Competitive interest above standard savings rates
• Traditional and Roth IRA options
• Spousal IRAs also available
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2020)*
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase CDs within IRA
• $1,000 minimum deposit to open

¹Consult a tax advisor.

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 70½

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• Principal contributions can be withdrawn without penalty¹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

¹Subject to some minimal conditions. Consult a tax advisor.

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

³Consult a tax advisor.

• Ideal for businesses of any size or self-employed individuals
• Gain the respect of your employees
• Help employees reach their retirement savings goals
• Employee always has complete ownership of all SEP IRA money
• Earn competitive interest on entire balance
• Contributions are tax deductible; your business pays no taxes on earnings
  • Contributions made only by the employer
  • Only self-employed may make contributions on their own behalf
• Little to no documents to file with government
• Inexpensive to set up and operate
• Flexible annual contributions – good plan if cash flow is unpredictable
• Can contribute up to 25% of each participant's annual compensation (earned income)
  • Or, up to the maximum allowable limit for current plan year, whichever is less¹
  • Must contribute equally for all employees
• Employee must first establish a traditional IRA, in which the employer will deposit SEP contributions
• $1,000 minimum deposit to open

¹Consult a tax advisor.

• Available to any small business – generally with 100 or fewer employees
• Gain the respect of your employees
• Employees have the option to make self-contributions
• Help employees reach their retirement savings goals
  • Employee always has complete ownership of all SIMPLE IRA money
  • Earns a competitive interest rate
  • Employer must not have any other retirement plan
• Minimal paperwork necessary; no filing requirements
• Inexpensive to set up and operate
• Lower contribution limits than some other retirement options
• Employees share responsibility of growing their retirement
• Each year, employer is required to contribute:
  • Matching contribution up to 3% of compensation, or
  • 2% nonelective contribution for each eligible employee¹
• $1,000 minimum deposit to open

¹Consult a tax advisor.