Individual Retirement Accounts (IRAs)

• Competitive CD rates above standard savings rates
• Traditional and Roth IRA options
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2022)¹
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to open IRA CDs
• $10 minimum deposit to open an IRA Savings
• $500 minimum deposit to open an IRA CD

The recent passing of both the SECURE AND CARES Acts have put new guidelines in place in regards to IRA Accounts &  Plans. Please read this to learn more about how it may affect you, and how it may affect your 2020 distributions and beyond.

If you have any questions about an IRA or if you would like to learn more about planning for retirement, please call our Member Solutions Center at 508-490-8000 today.

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 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 penalty^2,3
• Mandatory withdrawals at age 72

Roth IRA

• Income limits to be eligible to open Roth IRA^2,3
• 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• Principal contributions can be withdrawn without penalty¹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 penalty^2,3
• 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.

Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life.

• $2,000 maximum annual contribution per child until a child is 18 years old
• Set aside funds for your child's education
• No setup or annual fee
• Dividends grow tax-free
• Withdrawals are tax-free and penalty-free when used for qualified education expenses¹
• To contribute to an ESA, certain income limits apply²
• Designated beneficiary must be under 18 when contributions are made
• The money must be withdrawn by the time he or she turns 30³
• The ESA may be transferred without penalty to another member of the family
• $500 minimum deposit to open
• Contributions are not tax deductible

¹Qualified expenses include tuition and fees, books, supplies, board, etc.

²Consult your tax advisor to determine your contribution limit.

³Those earnings are subject to income tax and a 10% penalty.